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Computers and Technology, 13.03.2020 19:04 FutureDB
The Sharpe ratio compares the asset's realized excess return to its over a specified period. Excess returns measure the amount that investment returns are above the risk-free rate — so investments with returns equal to the risk-free rate will have a Sharpe ratio. It follows that over a given time period, investments with Sharpe ratios performed better, because they generated higher excess returns per unit of risk. The Sharpe ratio is calculated as.
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The Sharpe ratio compares the asset's realized excess return to its over a specified period. Excess...
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