PT - JOURNAL ARTICLE AU - Laurent Cantaluppi AU - Ruedi Hug TI - Efficiency Ratio AID - 10.3905/joi.2000.319419 DP - 2000 May 31 TA - The Journal of Investing PG - 19--25 VI - 9 IP - 2 4099 - https://pm-research.com/content/9/2/19.short 4100 - https://pm-research.com/content/9/2/19.full AB - 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.