Sharpe ratio Definition

Sharpe ratio

Definition

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.

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Sharpe ratio is ...
... part of the Mutual Funds and Technical Analysis subjects.

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Sharpe ratio appears in the definitions of these other terms on BusinessDictionary.com

market price of risk, Modern Portfolio Theory (MPT)