CFA Practice Question
To evaluate excess return per unit of risk for different portfolios, the most appropriate measure is ______.
A. variance.
B. Chebyshev's inequality.
C. the Sharpe ratio.
Explanation: The Sharpe ratio measures excess return per unit of risk; portfolios with different means and standard deviations can be meaningfully compared.
User Contributed Comments 2
| User | Comment |
|---|---|
| JohnOD | Got that one! |
| HolzGe1 | Rock on! |