Multiple Choice
Which one of the following statements is true? Notation: RVAR: Sharpe's reward-to-variability measure
RVOL: Treynor's reward-to-volatility measure
A) RVOL is based on total risk while RVAR is based on systematic risk.
B) RVAR is based on total risk while RVOL is based on systematic risk.
C) RVAR is based on unsystematic risk while RVOL is based on systematic risk.
D) RVOL is based on systematic risk while RVAR is based on unsystematic risk.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: When evaluating the performance of a mutual
Q21: What are some of the problems associated
Q30: The use of RVOL implies that total
Q32: <span class="ql-formula" data-value="\begin{array}{llcl}\underline{\text { SD }} &\underline{
Q36: Which of the following measures uses the
Q38: Sharpe's RVAR measures the slope of the
Q39: What is the major difference between the
Q40: The coefficient of determination is also known
Q47: Investors who have all their assets in
Q50: Sharpe's measure is a ratio of excess