Sharpe Ratio Calculator

Sharpe Ratio Calculator calculate the sharpe ratio to measure an investment's risk-adjusted return. Sharpe ratio formula on how to calculate sharpe ratio which uses expected portfolio return, risk free rate and portfolio standard deviation.

Sharpe Ratio Formula

Following is the sharpe ratio formula on how to calculate sharpe ratio.
Sharpe Ratio = (Expected Portfolio Return - Risk Free Rate) / Portfolio Standard Deviation

How to Calculate Sharpe Ratio

Let's see how to use the sharpe ratio formula. Suppose a financial asset has an expected return of 10% with the risk-free rate of 1.5%, and a standard deviation of the asset is 12%,