Posts Tagged ‘investment resources’

The Sharpe Ratio is…

Friday, June 18th, 2010

The Sharpe Ratio is a financial equation invented by Bill Sharpe, a recipient of the Nobel Prize For Economics. It serves as a rough guide to whether the ends justify the means in an investment (the higher the ratio, the better the risk-adjusted returns). In other words, whether the potential rewards from an investment justify the amount of risk involved.