Aug 4, 2024 · What Is the Sharpe Ratio? The Sharpe ratio compares the return of an investment with its risk. It's a mathematical expression of the insight that excess returns over a period of time may...

In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk.

Feb 27, 2024 · The Sharpe ratio—also known as the modified Sharpe ratio or the Sharpe index—is a way to measure the performance of an investment by taking risk into account.

Jan 30, 2024 · The Sharpe ratio calculates how much excess return you receive for the extra volatility you endure for holding a riskier asset. It's one of the most referenced risk/return measures used in...

Mar 27, 2024 · What Is the Sharpe Ratio? The Sharpe ratio measures the risk-adjusted return on an investment or portfolio, developed by the economist William Sharpe. The Sharpe ratio can be used to evaluate...

Named after American economist, William Sharpe, the Sharpe Ratio (or Sharpe Index or Modified Sharpe Ratio) is commonly used to gauge the performance of an investment by adjusting for its risk. The higher the ratio, the greater the investment return relative to the amount of risk taken, and thus, the better the investment.

The Sharpe ratio denotes an analytical tool to assess risk-adjusted returns on the financial portfolio or single security. Furthermore, it displays the investor's additional return earned after taking the additional risk. An investment portfolio with a greater Sharpe index is considered good and more desirable than the others.

We focus here on the Sharpe Ratio, which takes into account both risk and return without reference to a market index. [ Sharpe 1966, 1975] discusses both the Sharpe Ratio and measures based on market indices, such as Jensen's alpha and Treynor's average excess return to …

Feb 20, 2024 · The Sharpe ratio evaluates the risk-adjusted performance of an investment portfolio by determining the excess return received for the extra risk/volatility associated with a riskier portfolio. Economist William Sharpe came up …

Dec 8, 2023 · Named after its inventor, Nobel Prize winner William F. Sharpe, the Sharpe ratio addresses total returns relative to the amount of risk you incurred with your positions. In other words, it's a...