When applying the Sharpe ratio to assess portfolio management, which of the following statements is NOT true?
A) The higher the Sharpe ratio value then the risk-adjusted return is more favourable
B) The higher the Sharpe ratio value then the risk-adjusted return is less favourable
C) The lower the Sharpe ratio value then the risk-adjusted return is more favourable
D) The Sharpe ratio cannot be used to determine the performance of a portfolio
Correct Answer:
Verified
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