// multi-utility computation suite · offline · instant · precise
┌──────────────────────────┐
│ [c] calcalyst_ │
│ computation suite │
└──────────────────────────┘
// select a module to initialize
/ search↵ open firstesc close
// adsenseEMPTY_LEADER_SLOT728×90
// adsenseMOBILE_ANCHOR_SLOT320×50
// keyboard_shortcuts
/focus search
↑↓navigate module list
Enter
open first result from search
open highlighted
compute when module is open
compute when focused in a field
Escclose module · clear selection
⌫
finance.business-portfolio-sharpe Calculator
Calculates the Sharpe ratio for a business finance portfolio from return, risk-free rate, and standard deviation. A Sharpe ratio above 1.0 is considered good for long-only strategies — hedge funds typically target Sharpe above 0.5 after fees.
Inputs
Port Return
Reference formula or conversion factor shown for context.
Risk Free
Return on a theoretically safe investment like a government T-bill. The baseline return everything else is compared against. Enter as a decimal (e.g. 0.05 for 5%).
Port Vol
Annualised standard deviation of returns, as a decimal (e.g. 0.2 for 20%). Higher volatility increases option value. Implied vol is derived from market prices.
Benchmark
Reference formula or conversion factor shown for context.
Results
Sharpe ratio
Risk-adjusted return: (portfolio return − risk-free rate) / standard deviation. Above 1: good. Above 2: very good. Above 3: excellent. Below 0: worse than the risk-free rate.
information ratio
The proportional relationship between two quantities.
excess return
Sample size or count used in the calculation.
vol
Reference formula or conversion factor shown for context.
quality
A qualitative assessment of how the result compares to the desired standard or benchmark.