The principal reasons for using the Sharpe ratio when calculating a portfolio"™s performance are:

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answerhappygod
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The principal reasons for using the Sharpe ratio when calculating a portfolio"™s performance are:

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The principal reasons for using the Sharpe ratio when calculating a portfolio"™s performance are:

A. It indicates the percentage return above/below the risk-free rate for each unit of risk taken
B. It will always be quoted on a rolling quarterly basis
C. A positive Sharpe ratio will always guarantee positive returns
D. The higher the number, the more a portfolio manager can be said to have added value
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