Which One of the Following Statements Is True? Notation: RVAR

question 35

Multiple Choice

Which one of the following statements is true? Notation: RVAR: Sharpe's reward-to-variability measure
RVOL: Treynor's reward-to-volatility measure

• A)RVOL is based on total risk while RVAR is based on systematic risk.
• B)RVAR is based on total risk while RVOL is based on systematic risk.
• C)RVAR is based on unsystematic risk while RVOL is based on systematic risk.
• D)RVOL is based on systematic risk while RVAR is based on unsystematic risk.

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Definitions:

Interpret

To explain the meaning of or make sense of.

Descriptive Methods

Methods that yield descriptions of behavior but not necessarily causal explanations.

Experimental Methods

Techniques and procedures used in science to study and manipulate variables to establish cause-and-effect relationships.

Blind Studies

Research designs in which the participants do not know whether they are receiving the experimental treatment or a placebo.