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Basic Question 0 of 9
The biggest problem of using the Sharpe ratio to measure the performance of alternative investments is: A. It assumes a normally distributed returns but the returns profiles of alternative investments are not even symmetric.
B. It fails to include the correlation effect of alternative investments.
C. It fails to consider the impact of leverage.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe the performance appraisal of alternative investments
CFA® 2025 Level I Curriculum, Volume 5, Module 2.