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Basic Question 0 of 13
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 |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve;
describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.