Stocks vs. Real Estate, and Why I Chose Real Estate
To compare them apples-to-apples, we really need to look at the Sharpe ratio, which is used to help investors understand the return of an investment compared to its risk. An investment with a higher Sharpe is preferred over one with a lower Sharpe ratio; it means under the same risk level higher Sharpe ratio investment is going to yield a higher excess return or to get the same excess return with lower risk.