00:01
Hello, in this video i will be explaining the following.
00:04
So we're going to first start with the sharpe ratio.
00:08
And that is calculated by doing portfolio return minus risk -free rate.
00:34
And then you would divide it by the portfolio standard deviation.
00:46
And first we'll do the karuki sharpe ratio.
00:50
So that's 13 minus 8 .2 divided by 1 .7 which is 2 .8.
01:03
Next we'll do the mohamed sharpe ratio.
01:05
So that's 17 minus 8 .2 over 2 .4 which is 3 .67.
01:15
The mamanya sharpe ratio is 19 minus 8 .2 over 2 .6 which is 4 .15.
01:31
And then the wanyoni sharpe ratio is 22 minus 8 .2 over 2 .8 and that is 4 .93.
01:50
So the higher the sharpe ratio, the better the fund manager's performance.
01:55
And based on the sharpe ratio, our best performance is by our wanyoni with a 4 .93...