In finance, the is the ratio of a fund's excess returns annualized total returns minus Treasury bill returns) to its standard deviation.
A) field ratio
B) Sortino ratio
C) Calmar ratio
D) Sharpe ratio

Question

Quizplus · Accepted Answer

The Sharpe ratio is used in finance to measure the performance of an investment compared to a risk-free asset, after adjusting for its risk. It is calculated as the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns, thus providing a measure of excess return per unit of risk.

In Finance, the Is the Ratio of a Fund's Excess