The Sharpe Ratio Measures a Security's Return Relative to Which

question 89

Multiple Choice

The Sharpe ratio measures a security's return relative to which one of the following?

• A)total risk
• B)diversifiable risk
• C)market rate of return
• D)risk-free rate
• E)systematic risk

---

Definitions:

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often leading to the need for elimination adjustments in consolidated financial statements.

Pre-acquisition Entries

Journal entries made to adjust the values of the acquiring company's assets and liabilities upon acquisition.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses.

Intragroup Transactions

Transactions that occur between entities within the same group or corporate structure, often used for internal financing, sales, or services.