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Financial Fundamental Calculator- CAGR, Sharpe, Beta & more

Attached spreadsheet calculates:

Compound Annual Growth Rate (CAGR)
Sharpe Ratio
Treynor Ratio
Jensen's Alpha
Information Ratio

Required inputs:
Up to 5 price points or return levels for up to two separate investments
Up to 5 price points or return levels for a market index
Up to 5 price points or return levels for a risk-free rate of return

The Word document uses a simple, hypothetical comparison of two fictional funds as an example.


Solution Preview

CAGR: The first unanswered assumption is how you want to assess each portfolio. I recommend calculating and using CAGR rather than simply averaging the annual returns. See here for why/how:

Sharpe ratio: "The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been.," (

Beta: is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta ...

Solution Summary

Excel spreadsheet useful for calculating various investment benchmarks. Detailed formulas and references included.