Recent content by smart theta

GOLDMAN IS SPOT ON IBM - classic example of a big dumb company. Let's build a technology that no one wants (Watson) and then try to find a way to sell it. IBM is backwards - you always find out what your customer wants and then sell it to them. CFO recently said that they weren't specially...

Sharpe ratio looks at risk adjusted returns. You can take on more risk to increase returns. Can you increase returns without increasing risk? That's what the Sharpe Ratio looks at. Pick up a copy of GATs Systematic Trading for a good discussion of Sharpe.