{"id":10095,"date":"2023-03-01T14:09:48","date_gmt":"2023-03-01T08:39:48","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10095"},"modified":"2023-03-01T14:41:28","modified_gmt":"2023-03-01T09:11:28","slug":"sharpe-ratio","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/","title":{"rendered":"Sharpe Ratio &#8211; Meaning, Formula, Examples, and More"},"content":{"rendered":"\n<p>When investing in an asset, checking only its returns is not enough. You need to understand the risks involved too. Now, some metrics assess the risk-adjusted return of an asset to analyse whether it is a suitable <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> avenue. The Sharpe ratio is one such ratio.&nbsp;<\/p>\n\n\n\n<p>But what is Sharpe, and what is the importance of this ratio? Let\u2019s understand the Sharpe ratio meaning and what it is all about!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#What-is-the-Sharpe-ratio\" title=\"What is the Sharpe ratio?\">What is the Sharpe ratio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#Return-on-equity-Highlights\" title=\"Return on equity: Highlights\">Return on equity: Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#How-to-calculate-the-Sharpe-ratio-of-a-portfolio\" title=\"How to calculate the Sharpe ratio of a portfolio?\">How to calculate the Sharpe ratio of a portfolio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#Sharpe-ratio-formula\" title=\"Sharpe ratio formula\">Sharpe ratio formula<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#Sharpe-ratio-example\" title=\"Sharpe ratio example\">Sharpe ratio example<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#What-can-the-Sharpe-ratio-tell-you\" title=\"What can the Sharpe ratio tell you?\">What can the Sharpe ratio tell you?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#What-is-a-good-Sharpe-ratio\" title=\"What is a good Sharpe ratio?\">What is a good Sharpe ratio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#Advantages-and-disadvantages-of-the-Sharpe-ratio\" title=\"Advantages and disadvantages of the Sharpe ratio\">Advantages and disadvantages of the Sharpe ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#Alternatives-to-the-Sharpe-ratio\" title=\"Alternatives to the Sharpe ratio\">Alternatives to the Sharpe ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/glossary\/sharpe-ratio\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-Sharpe-ratio\"><\/span><strong>What is the Sharpe ratio?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/investmentu.com\/wp-content\/uploads\/2022\/03\/sharpe-ratio.jpg\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/investmentu.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Investment U<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>The Sharpe ratio is a technical ratio that measures the risk-adjusted returns of an asset, i.e. it shows how much return your invested asset will generate for the amount of risk you take by investing in it.<\/p>\n\n\n\n<p>Developed by the Nobel Prize-winning economist William F. Sharpe, the Sharpe ratio measures the additional returns you can earn from an asset by exposing yourself to its risks. The higher the returns, the better the asset is considered to be.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-37fca231\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Return-on-equity-Highlights\"><\/span>Return on equity: Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>The Sharpe ratio measures the risk-adjusted returns of an asset.<\/li>\n\n\n\n<li>It is calculated by dividing the excess returns over the benchmark return with the standard deviation(total risk of the asset).<\/li>\n\n\n\n<li>The Sharpe ratio can help you compare assets and choose one that offers higher returns (compared to the risk of investing in them).<\/li>\n\n\n\n<li>An ideal Sharpe ratio is one or greater than 1.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-calculate-the-Sharpe-ratio-of-a-portfolio\"><\/span><strong>How to calculate the Sharpe ratio of a portfolio?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To calculate the Sharpe ratio, three vital inputs are needed. They are: &#8211;<\/p>\n\n\n\n<ul>\n<li>The risk-free rate of return&nbsp;<\/li>\n\n\n\n<li>The expected return from the asset<\/li>\n\n\n\n<li>The standard deviation of the asset\u2019s returns.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>These three aspects are then employed in the Sharpe ratio formula to determine whether the asset is a good investment avenue.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Sharpe-ratio-formula\"><\/span><strong>Sharpe ratio formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Sharpe ratio is calculated as follows \u2013<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Sharpe ratio<\/strong><strong> = (Expected returns from the asset \u2013 the risk-free rate of return) \/ standard deviation of the asset\u2019s excess returns.&nbsp;<\/strong><\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Sharpe-ratio-example\"><\/span><strong>Sharpe ratio example<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To understand how the ratio is calculated, let\u2019s take the following example \u2013<\/p>\n\n\n\n<p>A mutual fund has an expected return of 12% per annum. The risk-free rate of return is 7%, and the fund\u2019s standard deviation is 4%. In this case, the Sharpe ratio would be calculated as follows \u2013<\/p>\n\n\n\n<p class=\"has-text-align-center\">Sharpe ratio = (12% &#8211; 7%) \/ 4% =1.25<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-can-the-Sharpe-ratio-tell-you\"><\/span><strong>What can the Sharpe ratio tell you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"512\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Importance-of-Sharpe-Ratio-1-1024x512.jpeg\" alt=\"\" class=\"wp-image-10098\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Importance-of-Sharpe-Ratio-1-1024x512.jpeg 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Importance-of-Sharpe-Ratio-1-300x150.jpeg 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Importance-of-Sharpe-Ratio-1-1536x768.jpeg 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Importance-of-Sharpe-Ratio-1-1024x512@2x.jpeg 2048w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Importance-of-Sharpe-Ratio-1-300x150@2x.jpeg 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>The Sharpe ratio interpretation can give useful insights into an asset or a portfolio. Here\u2019s what the ratio can tell \u2013<\/p>\n\n\n\n<ul>\n<li><strong>An asset\u2019s performance vis-\u00e0-vis its competitors&nbsp;<\/strong><\/li>\n<\/ul>\n\n\n\n<p>You can use the ratio to assess how an asset or fund is performing against similar assets or funds. This would help you understand whether the asset is giving you better returns than its competitors. For instance, if the Sharpe ratio of two blue-chip funds, A and B, is 1.5 and 1.75, respectively, fund B is better than fund A since it gives a higher return for the same level of risk.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Performance against the benchmark<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The risk-free rate of return used in the calculation of the ratio is the benchmark return. It is usually measured as the return offered by Government securities. These returns are the benchmark returns that your money can get without taking on any risks. The Sharpe ratio measures how the asset is performing against the benchmark.&nbsp;<\/p>\n\n\n\n<p>If the ratio is high or positive, the return outperforms the benchmark. On the other hand, a negative ratio means that the asset is returning below the benchmark returns.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>The risk-return trade-off<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Lastly, the ratio assesses the risk-return trade-off. It helps you check whether the investment risk of the portfolio is worth it by measuring the returns it generates. It helps you know whether your invested asset generates returns to compensate for the risk you are taking.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-good-Sharpe-ratio\"><\/span><strong>What is a good Sharpe ratio<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The calculated Sharpe ratio can be put into different categories to check whether it is good, bad or average. Have a look \u2013<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Ratio value<\/strong><\/td><td><strong>Interpretation<\/strong><\/td><\/tr><tr><td>Less than 1<\/td><td>Bad&nbsp;<\/td><\/tr><tr><td>1 to 1.99<\/td><td>Good<\/td><\/tr><tr><td>2 to 2.99<\/td><td>Very good<\/td><\/tr><tr><td>3 and above<\/td><td>Excellent&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Advantages-and-disadvantages-of-the-Sharpe-ratio\"><\/span><strong>Advantages and disadvantages of the Sharpe ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"512\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/adv-sharpe-1024x512.jpeg\" alt=\"\" class=\"wp-image-10106\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/adv-sharpe-1024x512.jpeg 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/adv-sharpe-300x150.jpeg 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/adv-sharpe-1536x768.jpeg 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/adv-sharpe-1024x512@2x.jpeg 2048w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/adv-sharpe-300x150@2x.jpeg 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>The ratio has both advantages and disadvantages. These are as follows \u2013<\/p>\n\n\n\n<p><strong>Advantages of the ratio<\/strong><\/p>\n\n\n\n<ul>\n<li>Ease of calculation&nbsp;<\/li>\n\n\n\n<li>Helps in comparing different types of investment options<\/li>\n\n\n\n<li>Aids in making investment decisions<\/li>\n\n\n\n<li>Can assess if the asset is outperforming the benchmark or not<\/li>\n<\/ul>\n\n\n\n<p><strong>Disadvantages of the ratio<\/strong><\/p>\n\n\n\n<ul>\n<li>The ratio can be easily manipulated by changing the time intervals for calculating the standard deviation. For instance, standard deviations on an annual basis are lower than that on a monthly basis. Thus, to downplay risks, analysts can consider annual returns and manipulate the ratio.<\/li>\n\n\n\n<li>The <a href=\"https:\/\/www.tickertape.in\/glossary\/volatility-meaning-calculation-importance-and-types\/\">volatility<\/a> is calculated using the normal distribution, which might not always be an accurate indicator of the financial markets.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Alternatives-to-the-Sharpe-ratio\"><\/span><strong>Alternatives to the Sharpe ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are other ratios too that serve as alternatives to the Sharpe ratio. These ratios are as follows \u2013<\/p>\n\n\n\n<ul>\n<li><strong>Sortino ratio<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Unlike the Sharpe ratio, the Sortino ratio only considers the downside deviation of the portfolio to better assess its risks. The standard deviation used in the Sortino ratio checks the variance of the returns that are negative or less than the benchmark rate against the average returns to give a better picture of the fund\u2019s risk-adjusted returns.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Treynor<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The Treynor ratio also uses a different denominator compared to the Sharpe ratio. Under the Treynor ratio, the denominator is the Beta of the asset (that checks the systematic risks). The ratio measures if you are enjoying higher returns for the extra risks you take.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Sharpe ratio is a good measure to check the returns vis-\u00e0-vis the risks you undertake. Analysts use the Sharpe ratio as an important metric to judge <a href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/\">mutual funds<\/a>. The portfolio\u2019s Sharpe ratio can help you determine how it is performing. Moreover, by comparing the ratio across other funds, you can pick the right mutual fund to invest in by comparing the ratio across other funds. So, understand what the ratio is all about, how to calculate the Sharpe ratio and its advantages. Also, know the limitations of the ratio and use it in conjunction with other metrics when making investment decisions.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-260ad283 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-f70a91b8\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>For which assets can I use the Sharpe ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">You can use the Sharpe ratio to calculate the risk-adjusted returns of any type of asset that is exposed to market risks. Examples include the Sharpe ratio in mutual funds, stocks, ETFs, etc.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-b6bf4ad8\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What does a negative Sharpe ratio mean?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">A negative ratio implies that the portfolio\u2019s returns may turn out to be negative or that the risk-free rate is greater than the predicted returns of the portfolio.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-9beef821\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Where do I get the required details to calculate the Sharpe ratio<\/strong>?<\/span><\/div><p class=\"uagb-faq-content\">The details are readily available in the market. You just need to check for the benchmark return of a Government security. The fund\u2019s standard deviation and expected returns can be garnered from its past performance.\u00a0<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Sharpe ratio calculates the risk-adjusted returns of an investment. Let\u2019s understand what the ratio is all about.<\/p>\n","protected":false},"author":90,"featured_media":10096,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[1929],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/2-1-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Anjali Chourasiya","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"The Sharpe ratio calculates the risk-adjusted returns of an investment. Let\u2019s understand what the ratio is all about.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10095"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10095"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10095\/revisions"}],"predecessor-version":[{"id":10108,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10095\/revisions\/10108"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/10096"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}