Sharpe Ratio Calculator Template
This Sharpe ratio calculator template demonstrates the calculation of the Sharpe ratio (using the arithmetic mean) to determine an investment’s performance relative to risk.
Below is a preview of the Sharpe ratio calculator template:
Download the Free 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 evaluate a single stock or an entirely diversified portfolio.
Sharpe Ratio formula
Sharpe Ratio = (Rx – Rf) / StdDev Rx
- Rx = Expected portfolio return
- Rf = Risk-free rate of return
- StdDev Rx = Standard deviation of portfolio return / volatility
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.