Read the above article about the Sortino ratio. In your opinion which is the better ratio: Sortino ratio or Sharpe ratio? Provide some examples to support your opinion. Frank Sortino, who created the one measure, thinks that both measures are bad ways to pick stocks. What do you think? [Note: it’s ok to agree or disagree with him.] Can you think of reasons why these might not be good ways to pick stocks? You do not need to address all these questions; they are merely suggestions to get you to think about the issues.
Your response must be 300 to 500 words. File must be uploaded as an MS Word document or pdf file by 5 PM on Friday February 7. Please feel free to use information from class or other sources (Google searches and reading information online, reading other articles, etc.). Just do not copy someone else’s writing or ideas verbatim, including your fellow students.