What is Sharpe Ratio?
Sharpe Ratio — A measure of return per unit of risk — higher is better. It shows how much extra return you earn for the volatility taken.
In simple terms
Between two funds, the higher Sharpe ratio gave more return per unit of risk.
Why Sharpe Ratio matters when you invest
Understanding sharpe ratio helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Sharpe Ratio — frequently asked questions
What is Sharpe Ratio?
A measure of return per unit of risk — higher is better. It shows how much extra return you earn for the volatility taken.
What does Sharpe Ratio mean in the stock market?
A measure of return per unit of risk — higher is better. It shows how much extra return you earn for the volatility taken. Between two funds, the higher Sharpe ratio gave more return per unit of risk.
Can you give an example of Sharpe Ratio?
Between two funds, the higher Sharpe ratio gave more return per unit of risk.
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