Sharpe Series

The Sharpe series is a way to measure how well an investment performs relative to its risk. It compares the excess return of a portfolio (return above a safe investment like government bonds) to the variability or volatility of those returns. A higher Sharpe series indicates better risk-adjusted performance, meaning the investment provides more reward for each unit of risk taken. This helps investors assess whether a higher return is worth the additional risk compared to other investment options.