Enter your investment return, risk free rate, and the standard deviation of the portfolio to calculate the sharpe ratio of the portfolio.

## Sharpe Ratio Formula

The following formula can be used to calculate the sharpe ratio of an investment.

SR = (IR – RFR) / SD

- Where SR is the sharpe ratio
- IR is the investment return
- RFR is the risk free return
- SD is the standard deviation

## Sharpe Ratio Definition

A sharpe ratio is defined as the ratio of the difference between an investment and a risk free asset with respect to the standard deviation of those investments.