The Reward-To-Variability Ratio (Sharpe Ratio) Measures

question 75

Multiple Choice

The reward-to-variability ratio (Sharpe ratio) measures:

• A) return above the risk-free rate.
• B) excess return per unit of total risk.
• C) total risk per unit of excess return.
• D) return above the risk-free rate relative to beta.

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Definitions:

Democratic-Republican Philosophy

A political ideology that emphasizes the values of democracy and republicanism, advocating for a government by the people, for the people, and with a focus on civil liberties.

Jefferson's Tenure

The period during which Thomas Jefferson served as the President of the United States, from 1801 to 1809, marked by significant events such as the Louisiana Purchase.

Government Theory

This refers to the study and analysis of political systems, governance structures, and theoretical foundations that guide the operation, organization, and relationship between government and the governed.

Monroe Doctrine

A cornerstone of American foreign policy introduced in 1823, which declared that further efforts by European nations to colonize land or interfere with states in the Americas would be viewed as acts of aggression, requiring U.S. intervention.