Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Sharpe Ratio Sharpe ratio evaluates the performance of a portfolio based on the total risk of a portfolio. It measures the excess return generated by a portfolio over the risk free rate in relation to the total risk or standard deviation of a portfolio. Sharpe Ratio= (Rp - Rf)/σ Where, Rp=return on the portfolio, Rf= risk free rate and ?= standard deviation of the return of the portfolio Higher the Sharpe ratio, better is the fund. Illustration: Consider two funds A and B. Let return of fund A be 30% and that of fund B be 25%. On the outset, it appears that fund A has performed better than Fund B. Let us now incorporate the risk factor and find out the Sharpe ratios for the funds. Let risk of Fund A and Fund B be 11% and 5% respectively. This...
Simple! Sensible!!
Investment Planning, Retirement Planning, Tax Planning, Financial Planning, Mutual Funds, Life Insurance, Wealth Management, Portfolio Management Services, Equity, Stocks, General Insurance, Medical Insurance, Travel Insurance, Financial Advisory Services, Personal Finance, Real Estate, Gold