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Which of the Following Statements Is FALSE

Question 52

Multiple Choice

Which of the following statements is FALSE?


A) The Sharpe ratio measures the ratio of volatility-to-reward provided by a portfolio.
B) Borrowing money to invest in stocks is referred to as buying stocks on margin.
C) The Sharpe ratio is the number of standard deviations the portfolio's return would have to fall to under-perform the risk-free investment.
D) The slope of the line through a given portfolio is often referred to as the Sharpe ratio of the portfolio.

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