Career Sharpe Ratio
Motivation If you're a young person trying to decide a career path but don't know much about the world and haven't established a particular passion in any field, it stands to reason that an objective measure may provide better guidance than following media hype or a random experiment based on anecdotal evidence. To that end, I asked an LLM for an analogous measure to the Sharpe Ratio used for choosing stocks by risk rated return. The Sharpe Ratio: Sharpe Ratio = R p − R f σ p \text{Sharpe Ratio} = \frac{R_p - R_f}{\sigma_p} where: R p R_p = average return of the portfolio (or investment) R f R_f = risk-free rate of return (e.g., yield on Treasury bills) σ p \sigma_p = standard deviation of the portfolio’s returns (a measure of volatility) The Career Efficiency Score (CES): A Risk-Adjusted Metric for Career Choice Inspired by the Sharpe ratio in finance, the Career Efficiency Score (CES) measures how much career reward you gain per un...