High-Frequency Trading and Latency Arbitrage › Quiz

Michael BrenndoerferJanuary 1, 20261 min read
Quantitative FinanceAll chapters
Part 12 of 15Market Making and High-Frequency Trading
Chapter 66High-Frequency Trading and Latency Arbitrage › Quiz
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High-Frequency Trading and Latency Arbitrage

Question 1 of 70 of 7 completed
The Sharpe ratio formula is E[Rp]−Rfσp.WhydoHFT\frac{E[R_p]-R_f}{\sigma_p}. Why do HFT strategies often achieve Sharpe ratios of 10 or higher?