Analysis

Indice di Sharpe

A risk-adjusted performance measure calculated as the excess return of a portfolio over the risk-free rate, divided by the standard deviation of portfolio returns. Used widely in performance attribution and fund selection.

Quick answer: A risk-adjusted performance measure calculated as the excess return of a portfolio over the risk-free rate, divided by the standard deviation of portfolio returns. Used widely in performance attribution and fund selection.

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Quick answer

A risk-adjusted performance measure calculated as the excess return of a portfolio over the risk-free rate, divided by the standard deviation of portfolio returns. Used widely in performance attribution and fund selection.

Why it matters

Indice di Sharpe matters because it supports clear communication in Analysis contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Indice di Sharpe?

In this glossary, Indice di Sharpe refers to: A risk-adjusted performance measure calculated as the excess return of a portfolio over the risk-free rate, divided by the standard deviation of portfolio returns. Used widely in performance attribution and fund selection.

How is Indice di Sharpe used in finance?

In finance communication, this term appears in contexts such as: "Un indice di Sharpe più elevato indica migliori rendimenti corretti per il rischio e viene preferito nell’analisi di fondi."

Why does Indice di Sharpe matter in finance?

Indice di Sharpe matters because it supports clear communication in Analysis contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Indice di Sharpe?

Indice di Sharpe is mainly used by Financial Analysts, Bankers, and Traders.

What category does Indice di Sharpe belong to?

In this glossary, Indice di Sharpe is grouped under Analysis. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A risk-adjusted performance measure calculated as the excess return of a portfolio over the risk-free rate, divided by the standard deviation of portfolio returns. Used widely in performance attribution and fund selection.

Operational example

A higher Sharpe ratio indicates better risk-adjusted returns, making it a preferred metric in mutual fund comparisons and investment analysis.

Localized term

Indice di Sharpe

Localized example

Un indice di Sharpe più elevato indica migliori rendimenti corretti per il rischio e viene preferito nell’analisi di fondi.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Analysis

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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