An Investor Would Like to Evaluate the Performance of Her

question 73

Multiple Choice

An investor would like to evaluate the performance of her portfolio using the Sharpe ratio.The past year realised return and standard deviation of returns of the portfolio,the benchmark portfolio,given by the S&P/ASX share price index,and government bonds are:
Has the portfolio:

• A)underperformed relative to the benchmark.
• B)outperformed the market benchmark on a risk-adjusted basis.
• C)underperformed the market benchmark on a risk-adjusted basis.
• D)outperformed the Government Bonds.

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Definitions:

Total Revenue

The overall income obtained by an enterprise from its sales or services within a designated period.

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.

Total Revenue

The total amount of money a company receives from sales of its products or services, before any expenses are subtracted.

Total Revenue

The total income generated by a firm from its sales of goods or services, calculated as the unit price times the quantity sold.