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:

Real Property

Land and anything permanently attached to it, such as buildings and fixtures.

Insurable Interest

A legal requirement for obtaining insurance policies, stipulating that the policyholder must stand to suffer a financial or personal loss from the insured event.

Appraisal Clause

A provision in insurance policies allowing for a neutral party to determine the value of property or the extent of damage in case of disagreement.

Insurance Policy

A contract between an insurance company and the policyholder which outlines the terms, coverage, and conditions under which the insurer agrees to compensate the insured for losses.