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Sharpe Ratio
Glossary · Core Metrics
Definition
Risk-adjusted return: excess return per unit of volatility. Higher is better, compared over the same period and risk-free-rate assumption.
A Sharpe of 0.8 means each unit of volatility delivered 0.8 units of excess return.
Terms are defined in the context of how ArthaPilot uses them. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.