The Sharpe Ratio of a manager series is the quotient of the annualized excess return of the manager over the cash equivalent and the annualized standard deviation of the manager return.

    Sharpe Ratio = (AnnRtn(r₁, ..., r_n) - AnnRtn(c₁, ..., c_n)) / AnnStdDev(r₁, ..., r_n)

where:

    r₁, ..., r_n = manager return series
    c₁, ..., c_n = cash equivalent return series

The Sharpe Ratio is a risk-adjusted measure of return which uses standard deviation to represent risk.

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