amount portfolio: The better-known of the two, the Sharpe ratio, was first published in 1964 by William Bill Sharpe, according to Market Watch. It ranks portfolios by their excess return above holding low-yielding but safe Treasury bills. Two financial ratios Wall Street uses to rate different portfolios' risk-adjusted performances have come under sharp criticism, including from one of the ratio's own inventors. The ratio is adjusted for the amount a portfolio's value deviates from a constant growth rate. A competing measure, the Sortino ratio, was announced in 1980. In 1990, along with other economists, Sharpe won the Nobel Prize in Economics for this and additional formulas.
(news.financializer.com). As
reported in the news.
Tagged under amount portfolio, sharpe ratio topics.