Comparing Risk Statistics & Risk-Adjusted Statistics

So, let’s put all of our investment risk statistics and risk-adjusted statistics to work. Figure 19 summarizes the statistics of a fund, Fund C, versus the S&P 500 and Barclays Aggregate Bond Indices.

Figure 19: Risk Statistics and Risk- Adjusted Statistics

Investors who are required to select and monitor investment managers should develop a basic understanding of investment statistics. Quantitative tools can provide you with good insight that you can use in your qualitative interviews with managers and when monitoring your investments.