Submit a two page written report in the blackboard box provided
Beta measures the volatility or risk associated with a portfolio relative to a benchmark index such as the S&P 500. A higher beta means more volatile compared to its benchmark, while a lower beta means less volatile compared to its benchmark. My portfolio had a beta of 0.98 which suggests that it has low volatility relative to its benchmark and thus may provide steady returns over time even when markets are turbulent.
Sharpe ratio measures how much excess return an investment generates per unit of risk taken on by investing in it (measured by standard deviation). It helps investors determine whether an investment is worth taking on given its level of risk, as higher Sharpe ratios suggest better performance for each additional unit of risk taken on by investors. My portfolio had a Sharpe ratio of 1.19 which suggests that I have made good use of my investments with regards to achieving returns without having to take on too much risk in order to do so, making it beneficial relative other investments available at the same level of processional expertise and management fees necessary