Red container top

Email signup


Red container bottom

Glossary

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z   All  

Sharpe Ratio

This is a commonly-used measure which calculates the level of a fund’s return over and above the return of a notional risk-free investment, such as cash or Government bonds. The difference in returns is then divided by the fund’s standard deviation – its volatility, or risk measurement. The resulting ratio is an indication of the amount of excess return generated per unit of risk.


 

Equilibrium Asset Management (A Limited Liability Partnership) is authorised and regulated by the Financial Services Authority. For more information, please go to www.fsa.gov.uk.