Which One of the Following Performance Measures Is the Sharpe

question 28

Multiple Choice

Which one of the following performance measures is the Sharpe measure?

• A) Average excess return to beta ratio
• B) Average excess return to standard deviation ratio
• C) Alpha to standard deviation of residuals ratio
• D) Average return minus required return

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Definitions:

Dissolve

To formally end or disband an entity such as a business partnership, corporation, or marriage.

Transferability

The quality of being able to be legally transferred from one owner to another, such as property, titles, or financial instruments.

Unanimous Vote

A vote in which all members of a decision-making body agree and there are no dissenting opinions.

Winding Up

The process of settling the accounts and liquidating the assets of a company for the purpose of distributing the proceeds to claimants and shutting down the company permanently.