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**Sharpe ratio**is a measure of the excess return per unit of risk in an investment. The Sharpe ratio is used to describe how well the return of an asset compensates the investor for the risk taken. Thus, the higher the Sharpe ratio the better. The Sharpe ratio is calculated as:**Sharpe ratio**= (Expected portfolio return – Risk free rate) / Portfolio standard deviation

To find the Sharpe ratio, simply fill in the values below and then click the “Calculate” button.

Sharpe Ratio =