Sharpe Ratio
Developed by William F. Sharpe, this calculation measures a ratio of return to volatility. It is useful in comparing two portfolios or stocks in terms of risk-adjusted return.
Sharpe ratio vs information ratio
A very simple case of this is where the benchmark is a risk free investment, in which case the Sharpe ratio is the excess return on the portfolio divided by the standard deviation of the return on the portfolio.
Sharpe Ratio
A number measuring the reward-to-risk efficiency of an investment, used to create risk-efficient portfolios.
Sharpe ratio
Treynor ratio
During the 1960s, Eugene Fama developed his efficient market hypothesis and William Sharpe published his capital asset pricing model (CAPM).
Sharpe Ratio
A ratio developed by Bill Sharpe to measure risk-adjusted performance. It is calculated by subtracting the risk free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.
Sharpe Ratio
This risk-adjusted measure was developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk.
Sharpe ratio
Stockholding & Investments
formula for calculating relationship between risk and return a method of determining the relationship between investment risk and return, ...
Sharpe Ratio
This ratio measures the amount of excess return for each unit of risk taken by the fund. It is measured as the difference in return generated by the fund and the return generated by the risk-free rate of interest.
Sharpe ratio. A return / risk ratio developed by William Sharpe. The return (numerator) is defined as the incremental average return over and above the risk-free rate (T-Bills).
Sharpe Ratio
A statistical measure which attempts to show the performance of a portfolio's return in risk adjusted terms.
Sharpe Ratio
A measurement of trading performance calculated as the average return divided by the variance of those returns; named after William P. Sharpe.
Shipping Certificate ...
Sharpe ratio
A rough guide to whether the rewards from an INVESTMENT justify the RISK, invented by Bill Sharpe, a winner of the NOBEL PRIZE FOR ECONOMICS and co-creator of the CAPITAL ASSET PRICING MODEL.
Sharpe ratio
A measure of a portfolio's excess return relative to the total variability of the portfolio. Related:
treynor index
Terms of Trade ...
Sharpe ratio
Using the Sharpe ratio is one way to compare the relationship of risk and reward in following different investment strategies, such as emphasizing growth or value investments, or in holding different combinations of investments.
Sharpe Ratio A measure of reward per unit of risk-the higher the Sharpe Ratio, the better. It is a portfolio's excess return over the risk-free rate divided by the portfolio's standard deviation.
Sharpe Ratio
The Sharpe ratio measures the risk-adjusted return of a fund. Simply put, the ratio measures the variability of ' excess returns' (defined by returns of the fund over the 'risk less' 91 day T-bill).
Sharpe ratio
One way to compare the relationship of risk and reward in following different investment strategies, such as emphasizing growth or value investments, is to use the Sharpe ratio.
The Sharpe Ratio is awkward to interpret when it is negative. Further, it is difficult to directly compare the Sharpe Ratios of several investments. For example, what does it mean if one investment has a Sharpe Ratio of 0.
How The Sharpe Ratio Can Oversimplify Risk
Understanding The Sharpe Ratio
Capture Profits Using Bands And Channels
Four-Week Rule Boosts Winning Trades ...
Sharpe ratio A risk-adjusted measure, calculated by using the standard deviation and excess... shelf life The maximum amount of time that a given item can remain in a salable condition on a retailer's shelf.
Sharpe ratio A measure of risk-adjusted return. To calculate a Sharpe ratio, divide an asset's excess returns (its return in excess of the return generated by risk-free assets such as Treasury bills) by the asset's standard deviation of returns.
Understanding The Sharpe Ratio
Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear. Financial Concepts ...
Similar financial terms
Sharpe ratio
A measure of a portfolio's excess return relative to the total variability of the portfolio.
Both the beta and standard deviation measure the volatility of a mutual fund; the higher the volatility, the higher the risk. The Sharpe Ratio measures the risk adjusted return.
A statistically created benchmark that adjusts for a manager's index-like tendencies. Named after William Sharpe, Nobel Laureate, and developer of the capital asset pricing model.
Sharpe ratio ...
gives information on how much extra return (risk premium) a fund is capable of giving for each unit of risk (volatility), and so making it possible to compare investment funds that have the same benchmark. As a result, funds with higher Sharpe ratios ...
par, PDV, portmanteau test, precautionary savings, principal strip, pro forma, put option, put-call parity, Q ratio, quasi rents, rents, residual claimant, resiliency, risk free rate puzzle, Roll critique, SCF, semi-strong form, senior, Sharpe ratio, ...
 See also: Expense, Banks, Compensation, Funding, Stock split
  
|
RSS
