Comparison of investment types

Comparative table of return & risk for various types of investments.

International Convertible Markets:   Bonds Equities Converts
Risk versus Return (1993-99) Return 7.18% 6.81% 7.38%
  Risk 7.64% 12.77% 8.67%
European Convertibles:        
Risk versus Reward (1993-99) Return 9.23% 19.05% 16.34%
   Risk 4.41% 15.15% 9.69%
Historic Sharpe Ratios   0.31 0.48 0.54
Sharpe Ratio = Portfolio return - Risk-free rate
Portfolio standard deviation
       
           

Data source: Global Convertible Investing The Gabelli Way 2002

 

Independent long-term studies show that convertibles generate higher risk-adjusted returns than bonds and shares (based on the Sharpe ratio).

 

 

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