Which of the following statements about the Sharpe ratio and Treynor ratio is most accurate? The Sharpe ratio is based on:
A) total risk, whereas the Treynor ratio is based on systematic risk.
B) systematic risk, whereas the Treynor ratio is based on total risk.
C) unsystematic risk, whereas the Treynor ratio is based on systematic risk.
D) total risk, whereas the Treynor ratio is based on unsystematic risk.
Correct Answer:
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