Sharpe Ratio

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What is the Sharpe Ratio?

The Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk.

 

Explanation:

It is used to understand the return of an investment relative to its risk.

 

Practical Example of Sharpe Ratio:

ONE-SIGNAL provides Sharpe ratio calculations to help traders assess the risk-adjusted performance of their portfolios.

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