Phrase guide

Sharpe ratio

noun · 1 senses · updated from the 2026-07-25 local source snapshot

Definitions and examples are grouped by meaning. Pronunciation, history, word forms, translations, descendants, synonyms, antonyms, derived terms, and related words appear whenever the source provides them.

Sound

Pronunciation

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1

noun

Meaning 1

A ratio that measures the excess return (or risk premium) per unit of deviation in an investment asset or a trading strategy, used to examine the performance of an investment by adjusting for its risk.

Definition source: English Wiktionary via Wiktextract

Topics: business, finance

No example sentence was provided for this meaning.

Meaning relationships

Synonyms: none provided

Antonyms: none provided

History

Etymology

Named after William F. Sharpe (born 1934), American economist.

Across languages

Translations

5 source translations are retained for this English entry.

  • Finnish: Sharpen luku — measure of risk-adjusted performance of an asset
  • German: Sharpe-Quotient — measure of risk-adjusted performance of an asset
  • German: Sharpe-Maß — measure of risk-adjusted performance of an asset
  • German: Sharpe-Verhältnis — measure of risk-adjusted performance of an asset
  • Swedish: Sharpekvot — measure of risk-adjusted performance of an asset