If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability
A) is above average.
B) is average.
C) is below average.
D) does not exist.
E) cannot be determined based on the Sharpe measure.

Question

Quizplus · Accepted Answer

A high Sharpe measure indicates that the portfolio manager is achieving high returns for the level of risk taken, suggesting above-average forecasting ability in selecting investments.

If a Portfolio Manager Consistently Obtains a High Sharpe Measure