What is mutual fund? What is alfa, SD, Sharpe ratio?

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A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets.

Mutual funds are managed by professional fund managers who invest the pooled money in a diversified portfolio of assets.
Investors buy shares in the mutual fund and earn returns based on the performance of the underlying assets.
Alpha is a measure of a mutual fund's performance relative to its benchmark index.
Standard deviation (SD) is a measure of the volatility of a mutual fund's returns.
The Sharpe ratio is a measure of a mutual fund's risk-adjusted returns, taking into account its volatility.
For example, a mutual fund that invests in a diversified portfolio of stocks may have a higher alpha than its benchmark index if the fund manager is able to pick stocks that outperform the market.
On the other hand, a mutual fund that invests in high-risk assets may have a higher SD, indicating that its returns are more volatile.
The Sharpe ratio helps investors evaluate whether a mutual fund's returns are worth the risk.

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