Which of the Following Is a FALSE Statement About the Sharpe

question 77

Multiple Choice

Which of the following is a FALSE statement about the Sharpe ratio?

• A)It is used to assess the performance of portfolios.
• B)It describes how well an asset's return compensates investors for the risk taken.
• C)It is the slope of the CML when the portfolio is not the market portfolio.
• D)It is a "risk-adjusted" measure of portfolio performance.

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Definitions:

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