How does the Sharpe Ratio Calculator work?
Free Sharpe Ratio Calculator - Calculates the Sharpe ratio given return on assets, risk free rate, and standard deviation
This calculator has 3 inputs.
This calculator has 3 inputs.
What 1 formula is used for the Sharpe Ratio Calculator?
Sharpe Ratio = (Ra - Rf)/σ
What 4 concepts are covered in the Sharpe Ratio Calculator?
- expected return
- amount of profit or loss an investor anticipates on an investment
- risk free rate
- the rate of return offered by an investment that carries zero risk
- sharpe ratio
- measures the excess return (or risk premium) per unit of deviation in an risky investment
(Return on Assets - Risk Free Rate)/Standard Deviation - standard deviation
- a measure of the amount of variation or dispersion of a set of values. The square root of variance
Sharpe Ratio Calculator Video
