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Sharpe Ratio calculation

Hello All,

When calculating the Sharpe ratio we use :

1) Portfolio Return, 2) Risk Free and 3) Standard Deviation of portfolio returns. Reading other literature I found that SD is calculated with Portfolio Excess Returns over the Risk free is this correct?

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If the risk-free rate is constant, the standard deviation of the portfolio returns is the same as the standard deviation of the portfolio’s excess returns over the risk-free rate.

Simplify the complicated side; don't complify the simplicated side.

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