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    Principles of Corporate Finance
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
  5. Question
    The Sharpe Ratio Is Defined As
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The Sharpe Ratio Is Defined As

Question 29

Question 29

Multiple Choice

The Sharpe ratio is defined as:


A) (rP - rf) /σP.
B) (rP - rM) /σP.
C) (rP - rf) /βP.
D) (rP - rM) /βP.

Correct Answer:

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