SHARPE RATIO Definition

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SHARPE RATIO, named after William P. Sharpe, is a measurement of portfolio trading performance. It is calculated by subtracting risk free rate from total portfolio return, then dividing by the standard deviation of the portfolio:Sharpe ratio = Total portfolio return - Risk free rate / Portfolio standard deviation.

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TARGET COSTING is a disciplined process for determining and realizing a total cost at which a proposed product with specified functionality must be produced to generate the desired profitability at its anticipated selling price in the future.

FREQUENCY, in advertising, is the number of times you hope to reach your target audience through your advertising campaign.

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