Sharpe ratio/Definition: Difference between revisions
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Measure of the rate of return per unit of variability of an investment portfolio, obtained by subtracting the current [[risk-free interest rate]] from the portfolio's current rate of return and dividing the result by the [[standard deviation]] of its rate of return. | |||
Latest revision as of 03:37, 17 October 2013
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Sharpe ratio [r]: Measure of the rate of return per unit of variability of an investment portfolio, obtained by subtracting the current risk-free interest rate from the portfolio's current rate of return and dividing the result by the standard deviation of its rate of return.