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Investment

Indice di Sharpe

A risk-adjusted performance metric that calculates the excess return per unit of total portfolio risk, typically expressed as the ratio of portfolio excess return over the risk-free rate to the portfolio's standard deviation.

Quick answer: A risk-adjusted performance metric that calculates the excess return per unit of total portfolio risk, typically expressed as the ratio of portfolio excess return over the risk-free rate to the portfolio's standard deviation.

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Quick answer

A risk-adjusted performance metric that calculates the excess return per unit of total portfolio risk, typically expressed as the ratio of portfolio excess return over the risk-free rate to the portfolio's standard deviation.

Why it matters

Indice di Sharpe matters because it supports clear communication in Investment 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 metric that calculates the excess return per unit of total portfolio risk, typically expressed as the ratio of portfolio excess return over the risk-free rate to the portfolio's standard deviation.

How is Indice di Sharpe used in finance?

In finance communication, this term appears in contexts such as: "L’indice di Sharpe del portafoglio è migliorato dopo che la diversificazione ne ha ridotto la volatilità complessiva rispetto al rendimento privo di rischio."

Why does Indice di Sharpe matter in finance?

Indice di Sharpe matters because it supports clear communication in Investment 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 Investment. 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 metric that calculates the excess return per unit of total portfolio risk, typically expressed as the ratio of portfolio excess return over the risk-free rate to the portfolio's standard deviation.

Operational example

The portfolio’s Sharpe Ratio improved after diversification reduced its overall volatility relative to risk-free return.

Localized term

Indice di Sharpe

Localized example

L’indice di Sharpe del portafoglio è migliorato dopo che la diversificazione ne ha ridotto la volatilità complessiva rispetto al rendimento privo di rischio.

Definition language

English reference definition

Source

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

Category

Investment

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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