CFA Practice Question

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!
You need to log in first to add your comment.