# How do I find the Sharpe Ratio?

Suppose I'm given two assets, $$x_0$$, $$x_1$$ and the stochastic discount factor m. How do I find $$m_p$$, then use it to compute Sharpe($$R_p$$)?

Any help is greatly appreciated.

• Isn't this a text-book thing? – SmallChess Mar 19 '15 at 22:57
• Please use latex and explain the difference between $m$ and $m_p$ and if you have assets $x_0$ and $x_1$ (prices? returns?) how does $R_p$ relate to that? – Richard Mar 20 '15 at 7:34