In finance, the is the ratio of a fund's excess returns (annualized total returns minus Treasury bill returns) to its standard deviation.
A) field ratio
B) Sortino ratio
C) Calmar ratio
D) Sharpe ratio

Question

Quizplus · Accepted Answer

The given description matches with the Sharpe ratio, which is a widely used measure for calculating risk-adjusted returns of a financial investment or portfolio. It takes into account the excess returns over the risk-free rate (represented as Treasury bill returns) and the volatility of those returns as represented by the standard deviation of the returns. Therefore, the higher the Sharpe ratio, the better the risk-adjusted performance of the fund or investment.

In Finance, the Is the Ratio of a Fund's Excess