util_sharpe

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

No annotations provided. The description does not disclose how returns are annualized (e.g., assuming 252 trading days) or whether the risk-free rate is used as is. The formula references 'annualized' terms but the input is raw returns, so the annualization step is implicit and not explained.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Is the description appropriately sized, front-loaded, and free of redundancy?

Single comprehensive sentence that front-loads the core purpose and formula with no extraneous information.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

While the schema covers parameters, the description leaves ambiguity about the annualization assumption (e.g., trading days count). For a calculation tool, the absence of such details makes it incomplete despite low complexity.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100% with descriptions for both parameters. The description adds the formula but no extra context about parameter meaning or usage beyond what the schema provides. Baseline score of 3 is appropriate.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool calculates the Sharpe Ratio using the formula (annualized return - risk-free rate) / annualized volatility, which is specific and distinct from sibling utility tools.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Does the description explain when to use this tool, when not to, or what alternatives exist?

No guidance on when to use this tool versus alternatives, nor prerequisites or limitations. The description only explains the calculation without context.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.