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A good Sharpe ratio typically falls above 1, indicating that the investment's returns are greater than the risk-free rate, adjusted for volatility. Ratios between 1 and 2 are generally considered acceptable, while those above 2 are viewed as excellent. However, the context of the investment and market conditions should be considered when evaluating the Sharpe ratio. Higher ratios indicate better risk-adjusted performance.

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3w ago

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