Sharpe Ratio
Risk & PortfolioRisk-adjusted return measure showing excess return per unit of total risk (standard deviation).
Formula
Sharpe Ratio = (Rp - Rf) / σp
Why it matters
Higher Sharpe means better risk-adjusted returns. Compare funds with similar mandates using Sharpe ratio.
Indian example
Related terms
Learn the concept
Mutual Funds, ETFs, AIFs →From the research
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