Sharp ratio
Sharp ratio is a measure of standalone risk that compares the asset's realized excess return to its standard deviation over a specified period. An investment with a higher ratio has performed better than one with a lower ratio.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Sharp ratio. A measure of standalone risk that compares the asset's realized excess return to its standard deviation over a specified period. An investment with a higher ratio has performed better than one with a lower ratio.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
