RupeeCase
Education . Sharpe Ratio . 2 of 3
The Math
Reward divided by the volatility you took to earn it.
Sharpe is the unit-of-risk-adjusted return. Same five-year window, same daily prices, same risk-free assumption. Higher Sharpe means more reward squeezed out of every unit of volatility.
Strategy
CAGR
Volatility
Sharpe
Allcap Multi Asset52 holdings . 80/10/10 . 2W rebal
43.57
21.51
1.79
Nifty 50 TRIbenchmark . cap-weighted index
10.68
14.03
0.79
Spreadhow much extra reward per unit of risk
+32.89
+7.48
+1.00
The honest read
CAGR is 4.1x. Volatility is only 1.5x. So every unit of risk earned 2.3x more reward. That is what Sharpe measures and CAGR alone never tells you.