Reviewed by JeFreda R. Brown The overall performance of your portfolio is the ultimate measure of how well your portfolio ...

The Sharpe ratio, named after Nobel laureate William F. Sharpe, measures the risk-adjusted performance of a portfolio. It is calculated by subtracting the risk-free rate of return from a portfolio's ...

How does one compare different investments that may deliver similar results on average, but exhibit different levels of risks? Enter William Sharpe. He introduced the reward-to-variability ratio in ...

It is now well known that the Sharpe ratio and other related reward-to-risk measures may be manipulated with option-like strategies. In this paper we derive the general conditions for achieving the ...

Definition: Sharpe ratio is the measure of risk-adjusted return of a financial portfolio. A portfolio with a higher Sharpe ratio is considered superior relative to its peers. The measure was named ...

The Sharpe ratio is one way to capture this risk-versus-reward detail and give investors extra insight into their assets' performance. Some investors use an index fund as a benchmark and attempt ...

Treynor Ratio vs. Sharpe Ratio: Key Differences Although both the Treynor ratio and Sharpe ratio assess risk-adjusted returns ...