How to Calculate Sharpe Ratio?
Sharpe Ratio calculator uses Sharpe Ratio = (Expected Portfolio Return-Risk Free Rate)/Portfolio Standard Deviation to calculate the Sharpe Ratio, Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations. Sharpe Ratio is denoted by SR symbol.
How to calculate Sharpe Ratio using this online calculator? To use this online calculator for Sharpe Ratio, enter Expected Portfolio Return (R_{p}), Risk Free Rate (R_{f}) & Portfolio Standard Deviation (σp) and hit the calculate button. Here is how the Sharpe Ratio calculation can be explained with given input values -> 0.357143 = (8-3)/14.