CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Choose the correct statement.
A. A portfolio with a Treynor ratio of 1 is better than the market portfolio.
B. A portfolio with a Sharpe ratio of 2 is better than the market portfolio.
C. We can never conclude whether a portfolio is better than the market portfolio or not by looking at the portfolio's Sharpe ratio or Treynor ratio only.
Explanation: We can, however, compare the ratios of the portfolio and the market portfolio to draw a conclusion.

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