Exam 2 review · Lesson 25 of 45
Stand-Alone Risk: r̂, σ, CV & Sharpe
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Exam 2 review · Lesson 25 of 45 · 13 min
Stand-Alone Risk: r̂, σ, CV & Sharpe
Turn a probability distribution into an expected return, a standard deviation, a coefficient of variation and a Sharpe ratio, and use them to compare investments.
Inside this lesson
- Why this matters
- The core idea
- The formula
- Worked example 1: one stock, start to finish
- Worked example 2: exam style, which is the better deal?
- Your turn
- Calculator steps
- Common mistakes
- Quick check
- Key takeaways
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