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:

Conflict

A situation or dynamic marked by disagreement, opposition, or contradictory needs between individuals or groups.

Expense

Money spent or costs incurred in the process of generating revenue; financial outlay.

Mutual Aid

A principle or practice where individuals or groups offer reciprocal help and support to each other, especially in times of crisis or need.

Model

A representation or example used as a guide for understanding, explaining, or simulating behaviors, processes, or systems.