sharpe ratio formula

The Sharpe Ratio Formula

The Sharpe Ratio was developed it in 1966 by William F. Sharpe as a way to quantify potential risk in an individual investment or an investing method or trading strategy.  The Sharpe Ratio is the defined difference of the returns between an investment and the potential risk free return that is then divided by the standard deviation/volatility of the …

The Sharpe Ratio Formula Read More »