Sharpe ratio


A risk-adjusted measure developed by William F. Sharpe, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund's historical risk-adjusted performance.

Use Sharpe ratio in a sentence

If you want to know how well a product has been doing one thing you can use is the sharpe ratio.

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I did not know how to determine the sharpe ratio and I had to call in an expert, who knew how to do it.

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The sharpe ratio was especially useful to the financial analyst who was tasked with assessing the risk of the project.

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