Card 1 . Same Three Funds. Three Ratios. Three Different "Best".

RupeeCase

Education . Risk Adjusted Return . 1 of 3

Friday chai. Friend pulls up three MF factsheets. CAGRs 13 to 20 pct. "Which one is best risk adjusted?"

I asked which ratio. He looked at me like the follow-up made no sense. Three legitimate ratios. Three different leaderboards on the same three funds. None of them wrong.

Same three funds. Three rankings.

Ratio

Rank 1

Rank 2

Rank 3

SHARPE

Fund C

0.54

Fund A

0.50

Fund B

0.45

SORTINO

Fund B

0.83

Fund C

0.81

Fund A

0.80

CALMAR

Fund A

0.81

Fund B

0.61

Fund C

0.53

Sharpe ranks Fund C first. Sortino flips to Fund B. Calmar inverts to Fund A. Same three returns. Three different "best". Each ratio is the answer to a different question.