Sharp performance measures above the capital market line indicate:
A) performance better than expected.
B) performance under what was expected.
C) performance as expected.
D) all of the above are correct.

Question

Quizplus · Accepted Answer

Performance measures above the capital market line indicate that an investment has performed better than expected, as the capital market line represents the risk-return trade-off of the market portfolio.

Sharp Performance Measures Above the Capital Market Line Indicate