Many conservative investors require Sharpe ratios of at least ________ to warrant undertaking riskier investments.

Question

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The Sharpe ratio is not typically expressed in percentage terms but rather as a number. A Sharpe ratio of at least 1 (or 100% if considering percentage terms, but this is not the conventional expression) is often considered acceptable to good by investors. However, none of the options provided (10%, 25%, 50%, 75%) directly correspond to common thresholds in the context of Sharpe ratios. Given the options, 50% (C) could be interpreted as the closest to a reasonable threshold, but it's important to clarify that Sharpe ratios are usually expressed as numbers like 1.0, 1.5, etc., indicating the excess return per unit of risk, and not in percentage terms. The question seems to be based on a misunderstanding of how Sharpe ratios are expressed and used.

Many Conservative Investors Require Sharpe Ratios of at Least ________