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Basic Question 0 of 7
Which statement is false regarding Sharpe ratio?
B. Sharpe ratio cannot be applied to assets with negative beta.
C. If the investor does not have any other assets than the portfolio, then the use of total risk is appropriate in the Sharpe ratio.
A. Sharpe ratio can be used to rank portfolios.
B. Sharpe ratio cannot be applied to assets with negative beta.
C. If the investor does not have any other assets than the portfolio, then the use of total risk is appropriate in the Sharpe ratio.
User Contributed Comments 2
| User | Comment |
|---|---|
| michlam14 | treynor ratio cannot be applied to assets with neg beta |
| chcarnes | Sharpe uses standard deviation |
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Learning Outcome Statements
describe the use of analysis of variance (ANOVA) in regression analysis, interpret ANOVA results, and calculate and interpret the standard error of estimate in a simple linear regression
CFA® 2025 Level I Curriculum, Volume 1, Module 10.