# Sharpe ratio

> English word · Noun

## Definitions
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.

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

## Source
Compiled from Wiktionary via kaikki.org (CC BY-SA). Data vintage: 2026-05-06.
Canonical page: https://plainspell.com/en/word/sharpe-ratio