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.




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


Related Terms

Sortino ratio -  More
Treynor Index -  More


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

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