Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Stars Ranking (continued) However, funds with different performances and different volatilities can have the same Star Ranking. Funds H and J have the same ratio. However, Fund H has a higher return than Fund J, while Fund J has the lower volatility. Under this example both Funds H and J will be awarded the same Star Ranking, because although their performance and volatility are different, the relationship of the consistency experienced by each to its performance is identical. The Standard & Poor's Star Ranking is by no means a solicitation to buy the given fund, but it gives investors a quick way to view relative performance, consistency and volatility in one simple figure. There are additional measures of risk and return analyzed, such as maximum drawdown, which represents the worst possible investment period in the period. Sharpe ratios and beta values have all been used as well as more complex measures such as Treynor Ratios or Jensen's Alpha. The latter was developed to try to determine how much active management can increase returns above those that are purely a reward for bearing market risk. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.