Switch to text-only version for screen readers & visually impaired
Wachovia logo: go to home page


PERSONAL FINANCE GLOSSARY


Alphabetical Listing
Search  
X
S
S&P
Current TermSharpe Ratio
Sharpe Ratio
A statistical expression calculated by dividing a fund's excess return by the standard deviation of those returns that measures the relative reward of holding onto risky investments. The higher the ratio, the greater the potential for return for the same amount of risk. The lower the ratio, the worse the fund's historical risk-adjusted performance. Developed by William F. Sharpe.