Which of the following measures uses the standard deviation,and evaluates portfolio performance on the basis of both return and diversification.
A)Jensen's Alpha.
B)Treynor's Reward to Volatility.
C)M2.
D)Sharpe Ratio.

Question

Quizplus · Accepted Answer

The Sharpe Ratio uses the standard deviation to evaluate portfolio performance by measuring the excess return per unit of risk, considering both return and diversification.

Which of the Following Measures Uses the Standard Deviation,and Evaluates