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:

Gas Particles

The small, discrete units that compose gases, moving freely and randomly and often described by the kinetic molecular theory.

Distances

Measurements of the space between two points, which can be measured in various units such as meters, miles, or light-years, depending on the context.

Gas Particles

The smallest constituents of a gas, moving freely and randomly, and obeying the gas laws.

Closed Container

A system where no matter is allowed to enter or leave, though energy transfer may still occur.