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

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Definitions:

Operation of Law

A legal term that indicates a right or liability is created or extinguished automatically due to existing laws, rather than by the act of a party.

Term Partnership

A business arrangement between two or more individuals who have agreed to jointly conduct business activities for a specific period of time.

Dissolve

The formal closure or termination of a corporation or partnership, often involving liquidation of assets to pay creditors.

Express Authority

Explicit permission granted to an agent by a principal to perform certain acts or transactions.