Sharpe's Measure of Portfolio Performance Compares the Risk Premium on a Portfolio

question 104

Multiple Choice

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to

• A) a broad-based market index such as the S&P 500 index.
• B) the portfolio's standard deviation of return.
• C) the portfolio's beta.
• D) the prevailing risk-free rate of return.

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Definitions:

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