The Sharpe ratio measures the return of an investment compared to a risk-free option, such as a government bond, with a ratio over 1 generally considered good as it indicates the fund provides adequate reward for the risk taken.

Authors

• Person: Not available Organization: Bajaj Finserv
  Risk Return Trade Off - Meaning, Importance and Example

Sources

• Risk Return Trade Off - Meaning, Importance and Example www.bajajfinserv.in Bajaj Finserv via serper

Referenced by nodes (3)

• government bonds concept
• Sharpe ratio concept
• investment concept