The Sharpe Ratio Is Considered to Be a Good Measure

Multiple Choice

The Sharpe Ratio is considered to be a good measure for well diversified portfolios because:

A) The most of the total risk in the portfolio is systemic risk
B) The beta estimate is unambiguous.
C) It used by mutual fund managers.
D) Unsystemic risk is of little worry in correctly diversified portfolios.
E) Well diversified portfolios have a high R-Squared correlation.