Returns the Sharpe ratio.
Syntax
NxSharpe(X,Freq, $R_f$)
 X
 is the portfolio's rate of returns data series (a onedimensional array of cells (e.g., rows or columns)).
 Freq
 is the data sampling frequency per year (i.e., number of data points in one year) (e.g., 12 = monthly, 4 = quarterly, etc.). If missing, a monthly frequency is assumed.
 $R_f$
 is the riskfree simple returns data (a single value or a onedimensional array of cells (e.g., rows or columns)). If missing, a zero (0) riskfree return is assumed.
Status
The NxSharpe function is available starting with NumXL version 1.68 CAMEL.
Remarks
 The shape ratio is the average return earned over the riskfree rate per volatility or total risk unit.
 The Sharpe ratio is expressed as follows: $$\textrm{Sharpe Ratio} = \frac{R_pR_f}{\sigma}$$ Where:
 $R_p$ is the return of a given portfolio or strategy.
 $R_f$ is the riskfree return.
 $\sigma$ is the standard deviation or volatility of the portfolio excess return.
 The riskfree rate of return is the return of an investment with zero risks, meaning it's the return investors could expect for taking no risk. The riskfree rate could be a U.S. Treasury rate or Yield, such as a onemonth Tbill or Tnote.
 The Sharpe ratio can evaluate a portfolio’s past performance (expost) where actual returns are used in the formula and help explain whether a portfolio's excess returns are due to smart investment decisions or a result of too much risk.
 By definition, all values in the input data set (i.e., X) must be greater than 1.0.
 The input data series may include missing values (e.g., #N/A, #VALUE!, #NUM!, empty cell), but they will not be included in the calculations.
 If the riskfree rate of return argument contains one value, it is assumed the value is the annual percentage riskfree rate of returns.
 If the riskfree rate of return argument contains multiple values, their size must be equal to the size of X.
Examples
Example 1:


Formula  Description (Result) 

=NxSharpe(\$B\$2:\$B\$14,12, 0.02)  Sharpe (Fund) (0.816652) 
=NxSharpe(\$C\$2:\$C\$14,12, 0.02)  Sharpe (Index) (0.176527) 
Files Examples
Related Links
References
 Hamilton, J .D.; Time Series Analysis, Princeton University Press (1994), ISBN 0691042896
 Tsay, Ruey S.; Analysis of Financial Time Series John Wiley & SONS. (2005), ISBN 0471690740
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