The three inputs into a Sharpe ratio calculation are your expected return, the risk-free rate and the standard deviation.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Financial ratios are powerful tools to help summarize financial statements and the health of a company. Browse Investopedia’s expert-written library to learn more.

The short interest ratio helps traders and analysts understand market sentiment and potential price moves. It compares the number of shares sold short to the average daily trading volume. A high ratio ...