Which one of the following measures a security's return in relation to the total risk associated with that security?
A)beta
B)Jensen's alpha
C)Sharpe ratio
D)Treynor ratio
E)Value-at-Risk

Question

Quizplus · Accepted Answer

The Sharpe ratio measures a security's return in relation to the total risk associated with that security. It takes into account both the security's return and the risk-free rate, as well as the standard deviation of returns. The higher the Sharpe ratio, the better the risk-adjusted return of the security.

Which One of the Following Measures a Security's Return in Relation