The ratio of the returns on an asset to the risks taken on by investors is known as:
A) the Marshall-Leamer theorem.
B) the price-to-earnings ratio.
C) the Sharpe ratio.
D) the standard deviation from zero.

Question

Quizplus · Accepted Answer

The ratio of returns to risk taken is known as the Sharpe ratio. The Marshall-Leamer theorem is related to econometrics, the price-to-earnings ratio is a measure of valuation, and the standard deviation from zero is a measure of variability but not specifically related to returns and risk.

The Ratio of the Returns on an Asset to the Risks