Sharpe Ratio
A way to examine the performance of an investment by adjusting for its risk.
Muhammad Azeem avatar
Written by Muhammad Azeem
Updated over a week ago

Sharpe ratio is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return per unit of deviation in an investment asset or a trading strategy, typically referred to as risk, named after William F. Sharpe.

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