The definition, visualization and demonstration of a calculation of the Sharpe ratio in Excel. We discuss the two types of performance analysis: returns-based and holdings-based. For investment and financial modeling of stocks and portfolios. Of course you can use the =AVERAGE function for returns and =STDEV.P for standard deviation. To truly learn investment modeling knowing this calculation is vital. https://factorpad.com/fin/glossary/sharpe-ratio.html Topics covered in our investment glossary: Excel tutorial, Python examples, portfolio theory, portfolio return, portfolio risk, correlation, regression, linear algebra, alpha signal, risk models, performance attribution. Glossary: https://factorpad.com/fin/glossary/index.html Innovators: https://factorpad.com/fin/innovators/index.html https://factorpad.com/