Sharpe Ratio

Sharpe ratio is a traditional measure of risk-adjusted returns, that allows the comparison of different assets and portfolios. In traditional finance, the following decision making is applied when using Sharpe ratio:

• Under 1.0 is considered bad
• 1.0 is considered acceptable or good
• 2.0 or higher is rated as very good

Read more about Sharpe Ratio in Credmark Wiki →