Which one of the following values would be the most preferable as a Sharpe ratio?
A)-1.11
B)-0.89
C)0.00
D).10
E)1.02

Question

Quizplus · Accepted Answer

A Sharpe ratio of 1.02 indicates that the investment has provided a high return compared to its level of risk, making it the most preferable choice. Choices A, B, and C all indicate either negative or no excess return compared to the risk-free rate, making them less desirable options. While a Sharpe ratio of 0.10 is positive, it is relatively low and may not justify the level of risk taken on by the investment.

Which One of the Following Values Would Be the Most