/Sterling Ratio

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Sterling Ratio

Return/risk ratio. Return is defined as the compound annualized rate of return over the last 3 years. Risk is defined as the average yearly maximum drawdown over the last 3 years less an arbitrary 10%. If the performance history is shorter than 3 years, the available data is used.

Formula - Sterling Ratio

Sterling Ratio is also available in a diferrent variation – Since Inception which is calculated for the whole period of a program.

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