Calculating Sharpe Ratio | Dataford Interview Questions

Write a function to calculate the Sharpe Ratio given a series of returns. Treat the risk-free rate as zero and use the arithmetic mean divided by the sample standard deviation. The function should accept a non-empty list of numeric periodic returns and return a float; return 0.0 when fewer than two returns or when all returns are identical.

Constraints

1 <= len(returns) <= 10^5
Each return is a finite integer or floating-point number
The risk-free rate is zero
Use the sample standard deviation with denominator n - 1
Return 0.0 when len(returns) < 2 or volatility is zero

Function Signature

def calculate_sharpe_ratio(returns):

Your question is Calculating Sharpe Ratio. Start with the requirements in the Question tab.

Run and submit as often as you like. When you're ready, talk me through your approach or go straight to the code.

Problem

Constraints

1 <= len(returns) <= 10^5
Each return is a finite integer or floating-point number
The risk-free rate is zero
Use the sample standard deviation with denominator n - 1
Return 0.0 when len(returns) < 2 or volatility is zero

Function Signature

def calculate_sharpe_ratio(returns):

Your question is Calculating Sharpe Ratio. Start with the requirements in the Question tab.

Run and submit as often as you like. When you're ready, talk me through your approach or go straight to the code.