The ____ index uses the standard deviation of a stock's return to measure the stock's risk-adjusted performance.
A)Sharpe
B)Treynor
C)arbitrage
D)margin

Question

Quizplus · Accepted Answer

The Sharpe index, also known as the Sharpe ratio, measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. It is calculated by subtracting the risk-free rate from the return of the investment and dividing the result by the standard deviation of the investment returns, thus using the standard deviation to measure risk-adjusted performance.

The ____ Index Uses the Standard Deviation of a Stock's