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The Sharpe ratio is known as $$SR=\frac{\mu-r_f}{\sigma}$$ Are these values calculated from discrete or continuously compounded returns?

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For client reporting purposes, it is customary to use discrete returns. For backtesting, it pretty much make no difference.

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These are the realized return and standard deviation for the portfolio over the period.

Source: Paul Wilmott on Quantitative Finance, sec. ed., p. 329-330

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