what is a sharpe ratio
The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations.It was developed by Nobel laureate William F. Sharpe. The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.Subtracting the risk-free rate from the mean return, the performance associated with risk-taking activities can be isolated.hat is the difference between a Sharpe ratio and a Sortino ratio. The Sharpe ratio and the Sortino ratio are both risk-adjusted evaluations of return on investment. The Sortino ratio is a ...