Sharpe ratio/Definition

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< Sharpe ratio
Revision as of 10:40, 23 May 2009 by imported>Nick Gardner (New page: <noinclude>{{Subpages}}</noinclude> a measure of the rate of return per unit of variability of an investment portfolio, obtained by subtracting the the current risk-free rate of return fro...)
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Sharpe ratio [r]: a measure of the rate of return per unit of variability of an investment portfolio, obtained by subtracting the the current risk-free rate of return from the portfolio's current rate of return and dividing the result by the standard deviation of its rate of return.