In assessing whether to invest in an asset,there is the need to look not only at how much money could be made but also at how much risk is being taken. The Sharpe Ratio, developed by Nobel Prize winner William Sharpe some 50 years ago, does precisely this: it compares the return of an investment to that of an alternative and relates the relative return to the risk of the investment, measured by the standard deviation of returns.
In this project, the Sharpe ratio is applied to real financial data using pandas.