The Sharpe ratio can be calculated using a benchmark portfolio, such as the S&P 500, the Russell 2000, or the MSCI EAFE, instead of the risk-free rate, though this is less useful when comparing investments across different asset classes.

Authors

• Person: Not available Organization: Plancorp
  Measuring the Risk and Return Tradeoff

Sources

• Measuring the Risk and Return Tradeoff www.plancorp.com Plancorp via serper

Referenced by nodes (3)

• Sharpe ratio concept
• risk-free rate concept
• asset classes concept