sharpe ratio

What is Considered a Good Sharpe Ratio?

Generally, a higher Sharpe Ratio indicates a more attractive risk-adjusted return. Here are some benchmarks:
- Less than 1: Suboptimal.
- 1 to 1.99: Acceptable.
- 2 to 2.99: Very good.
- 3 and above: Excellent.
However, these are just guidelines, and the acceptable threshold can vary depending on the investment strategy and market conditions.

Frequently asked queries:

What is the Sharpe Ratio?
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How to Calculate the Sharpe Ratio?
What is Considered a Good Sharpe Ratio?
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