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Shadow
April 30, 2020
Shitcoin
April 30, 2020

Sharpe Ratio

Published by TradersColo at April 30, 2020
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    The Sharpe ratio was developed by William Sharpe in 1966, showing how much excess return you can get for the increased volatility that you can tolerate caused by holding a risky asset.

    Calculation:
    S(x) = (rx-Rf)/StdDev(x)

    x = investment
    rx= average rate of return of x
    Rf= best available rate of return of a risk-free asset (ie. Currencies)
    StdDev (x) = standard deviation of rx

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