The __________ measures the reward to volatility trade-off by dividing the average portfolio excess return by the standard deviation of returns.
A)Sharpe measure
B)Treynor measure
C)Jensen measure
D)information ratio
E)None of the options

Question

Quizplus · Accepted Answer

The Sharpe measure is a measure of average excess average portfolio returns divided by the total risk of the portfolio returns (standard deviation).

The __________ Measures the Reward to Volatility Trade-Off by Dividing