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The yearly compounded return is indeed 8.78%. But the spreadsheet calculates a
monthly Sortino Ratio, so the average monthly excess return (0.31%) is used as the
numerator of the Sortino Ratio
The denominator is the square root of the second order lower partial moment, as
suggested by this Wikipedia article (not the standard deviation). This comes to
0.005054.
If you want to annualize the calculated Sortino Ratio, you multiply by sqrt(12).
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