A More Recent Adjustment to the Sharpe Measurement for Portfolio

question 57

Multiple Choice

A more recent adjustment to the Sharpe measurement for portfolio evaluation is

• A) to divide the portfolio risk premium by total risk rather than the portfolio's beta.
• B) to divide the portfolio risk premium by standard deviation rather than the portfolio's beta.
• C) to divide the portfolio risk premium by the excess portfolio return rather than total risk.
• D) to divide the excess portfolio return by the portfolio's standard deviation.
• E) to divide the excess portfolio return by the portfolio's beta.

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