Sharpe ratio

Investment appraisal.

The Sharpe ratio is the measure of risk-adjusted return of a financial portfolio.

A portfolio with a higher Sharpe ratio would be considered superior relative to others.

See also

• Financial risk
• Holding period return
• Investment appraisal
• Performance spread
• Portfolio investment
• Rate of return
• Rewarded risk
• Risk
• Risk-adjusted return
• Total return