The area known as Telford Borough today has been a dot on the map for close to two centuries. Although it has had several names, the location is the same. Telford Borough is located in southeastern Pennsylvania, approximately 40 miles northwest of Philadelphia. Read more ...
The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations.It was developed by Nobel laureate William F. Sharpe. The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.Subtracting the risk-free rate from the mean return, the performance associated with risk-taking activities can be isolated.hat is the difference between a Sharpe ratio and a Sortino ratio. The Sharpe ratio and the Sortino ratio are both risk-adjusted evaluations of return on investment. The Sortino ratio is a ...
When computing the Sharpe ratio, investors must first make sure they have an abundance of consistent and comparable data points. The more data points we use, the more likely distribution is normal and thus the more accurate our results will be.