These days, investors are arguably as concerned, if not more so, about what risk-adjusted returns they are earning as they are about the level of absolute returns achieved. This is a good thing. Thinking in risk-adjusted terms allows investors to gain a better understanding of financial products and to find solutions more suited to their risk tolerance. However, this only works if the risk measure that you are relying on is telling you something sensible about how much risk you are actually taking.
These days, investors are arguably as concerned, if not more so, about what risk-adjusted returns they are earning as they are about the level of absolute returns achieved. This is a good thing. Thinking in risk-adjusted terms allows investors to gain a better understanding of financial products and to find solutions more suited to their risk tolerance. However, this only works if the risk measure that you are relying on is telling you something sensible about how much risk you are actually taking.