Sharpe ratio (SR)
0730-en RE430 Financial Market Law As of 11.07.2026
Parameter which expresses the connection between risks and returns. Absolute returns (total returns) are disclosed per unit of risk incurred. The value obtained shows the risk-adjusted performance of a capital investment. For this parameter, it is therefore interesting to know how much risk was entailed in generating a return. The higher the compensation per risk unit, the better.
Deutsch
Sharpe Ratio (SR) 0730-de
Kennzahl, die den Zusammenhang zwischen Rendite und Risiko zum Ausdruck bringt. Die absolute Rendite (Gesamtrendite) wird pro Einheit eingegangenes Risiko dargestellt. Der Wert zeigt so die risikoadjustierte Performance einer Kapitalanlage. Bei dieser Kennzahl interessiert folglich, mit wie viel Risiko eine Rendite erkauft worden ist. Je höher die Entschädigung pro Risikoeinheit, desto besser.
Suggested citation
Sharpe ratio (SR) (0730-en), in: LAWPEDIA®-Glossar, provided by LAWCONSULT AG, www.lawconsult.ch/lawpedia/en/sharpe-ratio-sr, as of: 11.07.2026 [accessed on …].
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