And one risk-free option to consider is a jumbo CD ... the best of expert advice - straight to your e-mail. To find the best jumbo CD rate, you need to follow a few steps, including choosing ...
To calculate this ratio, determine the difference between an investment's average return rate and the risk-free rate. Then divide this figure by the standard deviation of negative returns.
The formula for calculating the Sharpe Ratio is—(investment return—risk-free return rate)/ standard deviation of returns.
The market return is further subdivided into the market risk premium and the risk-free rate. The risk-free rate of return is typically estimated using the rate of return of short-term Treasury ...