Business & Finance homework help| Business & Finance homework help
The Sharpe Ratio, which compares returns to risk and measures them against each other, is one of the key metrics that investors should consider when assessing volatility risks. This ratio allows investors to assess whether the returns earned on their investments are adequate in comparison with the risk they have taken. Other factors, such as beta and alpha can provide additional insight on how well a manager performed. This is done by comparing their portfolio to market benchmarks.
Based on these metrics it appears that the fund manager’s performance has been relatively average; with some potential for improvement in terms of lower levels of volatility if better investment strategies were implemented. However; given that there have also been periods where higher than average returns have been seen; it’s clear that they are capable of producing positive outcomes under certain market conditions.
Investors should be confident that the fund manager will continue to deliver the desired results.