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Which One of the Following Statements Is True

Question 3

Multiple Choice

Which one of the following statements is true?
Notation: Sharpe - Sharpe's reward-to-variability measure (RVAR)
Treynor - Treynor's reward-to-volatility measure (RVOL)


A) Treynor is based on total risk while Sharpe is based on systematic risk.
B) Sharpe is based on total risk while Treynor is based on systematic risk.
C) Sharpe is based on unsystematic risk while Treynor is based on systematic risk.
D) Treynor is based on total risk while Sharpe is based on unsystematic risk.

Correct Answer:

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