50 stock picks to buy, high Sharpe ratio investments: Goldman Sachs

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50 stock picks to buy, high Sharpe ratio investments: Goldman Sachs
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GOLDMAN SACHS: Buy these 50 stocks that are trading at steep discounts that make them low-risk and high-reward

Investors use the Sharpe ratio to see if they're being rewarded for the risks they take.He says that approach has historically delivered excess returns without much extra risk.

Goldman Sachs Chief US Equity Strategist David Kostin says that zeroing in on stocks with higher Sharpe ratios has been a successful strategy over time, delivering better returns than the S&P 500 and the vast majority of core stock funds for decades. But now Kostin is using the concept of Sharpe ratios in a unique way. Instead of evaluating the performance of a mutual fund or a portfolio, he's interested in finding stocks that are going to deliver solid returns going forward.

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