What is sharp ratio?
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What is sharp ratio?
The Sharpe ratio is a measure of risk-adjusted return, which compares the excess return of an investment to the amount of risk taken on to achieve that return. It is calculated by subtracting the risk-free rate of return from the investment's rate of return, and dividing that result by the investment's standard deviation of returns. The higher the Sharpe ratio, the better the investment's risk-adjusted return.
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