Sharpe Ratio
Returns the Sharpe ratio, which measures excess return per unit of total risk.
Syntax
=SharpeRatio()Returns
number
Sharpe ratio value
Examples
=SharpeRatio()When to Use
- Risk-adjusted performance comparison
- Portfolio optimization
- Manager evaluation
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Downside risk only | SortinoRatio() |
| Market risk adjustment | TreynorRatio() |
Common Issues & FAQ
What's a good Sharpe ratio?
Above 1.0 is generally good; above 2.0 is excellent.
Excel Templates Using Sharpe Ratio
These ready-made MarketXLS templates call SharpeRatio() in their worksheet formulas. Open one to see the function working inside a complete model.
Related Formulas
More MarketXLS Portfolio Analytics formulas you can use in the same worksheet:
- Value At Risk
- Wealth Index
- AIPortfolio Optimize
- AIPortfolio Predict Returns
- Drawdown
- Holdings Gain
- Holdings Gain Percent
- Holdings Gain Percent Real-Time
See SharpeRatio used in a complete workbook: Sharpe Ratio: Complete Guide to Portfolio Risk-Adjusted Returns in Excel
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