Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 2 of 11
The biggest problem of using the Sharpe ratio to measure the performance of alternative investments is: A. It assumes a normally distributed returns but the returns profiles of alternative investments are not even symmetric.
B. It fails to include the correlation effect of alternative investments.
C. It fails to consider the impact of leverage.
User Contributed Comments 0
You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
describe the performance appraisal of alternative investments
CFA® 2024 Level I Curriculum, Volume 5, Module 2.