Using your phone's internet browser
go to:
Click and drag this link to
the Home icon in your browser.

What is sharp ratio in mutual fund actually mean.Suppose fund A's sharp ratio is 1.8 whether B's sharp ratio is one can conclude with this example?

Tags: mutual fund, fund, example
Asked by sabyasachi mandal, 19 Mar '08 05:21 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
Keep me signed inNew User? Sign up

Answers (1)


Sharpe Ratio

The Sharpe Ratio is a measure of the risk-adjusted return of an investment.
It was derived by Prof. William Sharpe, now at of Stanford University who
was one of three economist who received the Nobel Prize in Economics in
1990 for their contributions to what is now called "Modern Portfolio
Theory". Prof. Sharpe's web site at has
several papers on this topic.

The calculation is pretty straightforward. You invest money in some
investment. You then calculate the value of your investment account
(including the initial investment plus the profit/loss) periodically, say
for example, every month. You then calculate the percentage return in each
month. It doesn't matter what kind of investment. It could be simply buying
and holding a single stock, or trading several different commodities with
several different trading systems. All that matters is the account value at
the end of each month.

Then calculate the averag ...more
Answered by Jinesh Mukesh Karia, 19 Mar '08 05:36 pm

Report abuse
Not Useful
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer


Raj Thackeray will not answer this, because he was never looking for ans to all the subsequent qns. that would have any way arisen, which he knew will..more

Answered by Omega