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Ratings of Frequency Are Better Than Ratings of Intensity

question 44

True/False

Ratings of frequency are better than ratings of intensity.


Definitions:

Sharpe Ratio

Reward-to-volatility ratio; ratio of excess return to portfolio standard deviation.

Standard Deviation

Standard Deviation is a measure of the dispersion or variability of a set of data points or investment returns around the mean.

Returns

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment by dividing the difference between the investment's return and the risk-free rate by the standard deviation of the investment's returns.

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