Sharpe's Measure Is a Ratio of Excess Return to Total

question 50

True/False

Sharpe's measure is a ratio of excess return to total risk.

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Definitions:

Principal

The original sum of money borrowed in a loan, or the amount of the investment itself.

Interest Components

Elements that contribute to the total interest calculation, often including principal, rate, and time.

Per Annum

Annually or per year, often used to describe rates or amounts calculated over the span of a year.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed-term investment, including the principal and interest.