TY - JOUR T1 - Efficiency Ratio JF - The Journal of Investing SP - 19 LP - 25 DO - 10.3905/joi.2000.319419 VL - 9 IS - 2 AU - Laurent Cantaluppi AU - Ruedi Hug Y1 - 2000/05/31 UR - https://pm-research.com/content/9/2/19.abstract N2 - The efficiency ratio as a performance measure is based on the ex post efficient frontier underlying the investment environment. Consideration of return potential offers some absolute judgment provided by other performance measures. The absolute performance of the benchmark can also be assessed. The efficiency ratio is related to the Sharpe ratio, but improves on it, consistent with modern portfolio theory. Application to mutual funds in the U. S. stock market demonstrates its superior performance measurement. ER -