Hi there, I'm an expert in finance and I'd be happy to explain how to calculate the Sharpe ratio. The Sharpe ratio is a measure of the performance of an investment compared to a risk-free asset, after adjusting for its risk. It's calculated by using the average return of the investment minus the risk-free rate, divided by the standard deviation of the investment's returns. The standard deviation is a measure of the investment's volatility. Here's a step-by-step guide on how to calculate the Sharpe ratio: 1. Identify the Time Periods: Decide on the time periods you want to measure. This could be daily, monthly, or yearly returns. 2. Calculate the Excess Returns: For each time period, calculate the investment's return and subtract the risk-free rate. The risk-free rate is typically the return of a U.S. Treasury bill with a similar maturity to your investment. 3. Average the Excess Returns: Once you have the excess returns for each time period, calculate the average of these values. 4. **Calculate the Standard Deviation of Excess Returns**: Use the standard deviation function to measure the volatility of the excess returns. This will give you an idea of how much the returns fluctuate. 5. **Divide the Average by the Standard Deviation**: Finally, divide the average excess return by the standard deviation to get the Sharpe ratio. Here's an example in Excel: - Copy this equation into each row for all time periods: `=Return - Risk-Free Rate` - Next, calculate the average of the excess return values in a separate cell: `=AVERAGE(range)` - In another open cell, use the `=STDEV` function to find the standard deviation of excess return: `=STDEV(range)` - Finally, calculate the Sharpe ratio by dividing the average by the standard deviation: `=Average Excess Return / Standard Deviation` Remember, a higher Sharpe ratio indicates better risk-adjusted performance. However, it's important to consider other factors as well when evaluating an investment. Now, let's translate the above explanation into Chinese. read more >>

Copy this equation into each row for all time periods. Next, calculate the average of the excess return values in a separate cell. In another open cell, use the =STDEV function to find the standard deviation of excess return. Finally, calculate the Sharpe ratio by dividing the average by the standard deviation.Feb 12, 2018read more >>