Analysis and Interpretation A higher Sharpe metric is always better than a lower one because a higher ratio indicates that the portfolio is making better investment decisions and not being swayed by the risk associated with it. Here is a list of sharpe ratio grades and what they mean. ...
Interpretation:A higher Information Ratio indicates that an investment manager has consistently outperformed the benchmark with a lower level of risk. On the other hand, a higher Sharpe Ratio implies a higher risk-adjusted return, regardless of benchmark performance. In conclusion, the Information Rat...
Loan covenants usually center around DSCR (Debt Service Coverage Ratio), must be greater than 1.25 but typically not higher than 1.75. Other covenants will include minimum net worth and total debt/EBITDA between 3x/4x over the life of the loan. One searcher felt, “You want to be able to ...