@@ -23,13 +23,13 @@ def sharpe_ratio(returns: list[float], risk_free_rate: float = 0.0) -> float:
2323 Calculate the Sharpe Ratio for a series of returns.
2424
2525 The Sharpe Ratio formula:
26- S = (R - Rf) / σ
26+ S = (R - Rf) / std_dev
2727
2828 Where:
2929 S = Sharpe Ratio
3030 R = Average return of the investment
3131 Rf = Risk-free rate of return
32- σ = Standard deviation of returns (volatility)
32+ std_dev = Standard deviation of returns (volatility)
3333
3434 :param returns: List of periodic returns (e.g., daily, monthly)
3535 :param risk_free_rate: Risk-free rate of return per period, default 0.0
@@ -96,7 +96,8 @@ def annualized_sharpe_ratio(
9696 :param periods_per_year: Number of periods in a year, default 252 (daily)
9797 :return: Annualized Sharpe Ratio
9898
99- >>> round(annualized_sharpe_ratio([0.001, 0.002, 0.0015, 0.0005, 0.0012], 0.0, 252), 4)
99+ >>> round(annualized_sharpe_ratio(
100+ ... [0.001, 0.002, 0.0015, 0.0005, 0.0012], 0.0, 252), 4)
100101 35.1844
101102 >>> round(annualized_sharpe_ratio([0.01, 0.02, 0.015, 0.005, 0.012], 0.0, 12), 4)
102103 7.6779
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