When Applying the Sharpe Ratio to Assess Portfolio Management, Which

Multiple Choice

When applying the Sharpe ratio to assess portfolio management, which of the following statements is NOT true?

A) The higher the Sharpe ratio value then the risk-adjusted return is more favourable
B) The higher the Sharpe ratio value then the risk-adjusted return is less favourable
C) The lower the Sharpe ratio value then the risk-adjusted return is more favourable
D) The Sharpe ratio cannot be used to determine the performance of a portfolio