The principal reasons for using the Sharpe ratio when calculating a portfolio"™s performance are:
Posted: Wed Aug 03, 2022 9:20 am
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
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