The Sharpe Ratio | Calculation & Explanation

The Sharpe Ratio | Calculation & Explanation

The Sharpe Ratio | Calculation & Explanation In this video, I review the Sharpe ratio formula and do an example problem containing two portfolios. I use the Sharpe ratio to determine which of the two portfolios gives a higher excess return over the risk-free rate per unit of risk. Chapters: Formula (0:00) Example (1:09) Thanks for Watching!