The Sharpe ratio is largely used by hedge funds and investment managers, rather than everyday investors, since they manage large portfolios and want to maximize customers' returns without too much ...

Hedge funds track how big their returns are relative to the risk they took to generate them. Since its inception, Millennium ...

Use this ratio to evaluate the return of an investment compared to its risk The Sharpe ratio measures the risk-adjusted return on an investment or portfolio, developed by the economist William Sharpe.

Modern Portfolio Theory leverages the Sharpe ratio to enhance portfolio construction by emphasizing asset class correlations – especially in fixed income. Using Morningstar index data ...