This sharpe ratio calculator template demonstrates the calculation of sharpe ratio to determine an investment’s performance relative to risk.
Below is a preview of the sharpe ratio calculator template:
Enter your name and email in the form below and download the free template now!
The Sharpe ratio is commonly used as a means of calculating the performance of an investment after adjusting for its risk. This allows investments of different risk profiles to be compared against each other.
In the Sharpe Ratio, a higher value means greater returns for the portfolio relative to the inherent risk. This also means a better investment. Because of the simplicity of the formula, the Sharpe Ratio can be used to evaluated a single stock, or an entirely diversified portfolio.
Sharpe Ratio = (Rx – Rf) / StdDev Rx
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.