Sharpe ratio
The Sharpe ratio measures risk-adjusted return: (mean return − risk-free rate) ÷ standard deviation of returns. Values above 1.0 are considered respectable; above 2.0 is excellent; under 0.5 is usually noise.
The Sharpe ratio measures risk-adjusted return: (mean return − risk-free rate) ÷ standard deviation of returns. Values above 1.0 are considered respectable; above 2.0 is excellent; under 0.5 is usually noise.