It's better to have a higher Sharpe ratio. In general, less than 1 is considered not ideal, 1 to 1.99 is adequate to good, ...

The Sharpe ratio and the Treynor ratio are two ratios used to measure the risk-adjusted rate of return. Both are named for their creators, Nobel Prize winner William Sharpe and American economist ...

If you have invested in mutual funds, you have surely heard of Sharpe and Treynor ratios. In fact, if you open the fund factsheet of any equity mutual fund, you will find the Sharpe ratio ...

The Treynor ratio and the Sharpe ratio are financial metrics that ... A high Treynor ratio figure suggests that the portfolio is delivering strong returns for its level of risk, while a lower ...

However, a Sharpe ratio greater than zero is typically considered good. A zero Sharpe ratio means that your returns are matching the "risk-free" version of your investment, typically a Treasury ...

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio ... should be considered in calculating ...

Modern Portfolio Theory leverages the Sharpe ratio to enhance portfolio construction by emphasizing asset class correlations – especially in fixed income. Using Morningstar index data ...