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How do you calculate the Sharpe ratio/measure?


Given this information:
Over the past five years, the Phoenix Fund has averaged a monthly return of
0.013, while money market instruments have yielded 0.006. During the same
period, the mean return on the market index was 0.08 with a standard deviation
of 0.25 and beta of 1.0. While evaluating Phoenix Fund, you computed a standard
deviation of returns 0.36, and a beta of 1.2.

It's just the excess return divided by the standard deviation of returns.

Sharpe for Pheonix Funds:
(0.013-0.006)/0.36

Sharpe for the index:
(0.08-0.006)/0.25

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