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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: JB2 who wrote (2535)	8/8/1999 8:26:00 AM
From: marketbrief.com	Read Replies (1) \| Respond to of 18137

hi JB2, Sharpe Ratios can be used to compare various investments' risk-adjusted performance. The higher the Sharpe ratio is, the greater an investment's return per unit of risk. The formula for calculating the Sharpe Ratio is to subtract a benchmark return from the investment's return for each time period you are working with. Next you take the average of these periodic differences and divide the result by standard deviation of the differences. The higher the number, the better the risk-adjusted performance score. Kacy, the resident economist at iSpec., may be able to give you a more coherent definition.... ~Smart$