Which one of the following measures returns in relation to total risk?
A)Treynor ratio
B)Sharpe ratio
C)Jensen's alpha
D)Value-at-Risk
E)beta

Question

Quizplus · Accepted Answer

The Sharpe ratio is the only measure listed that returns in relation to total risk. The Treynor ratio and Jensen's alpha only consider systematic risk, while beta measures the correlation between an asset's returns and the market's returns, but doesn't account for total risk. Value-at-Risk is a measure of potential losses, but does not consider returns.

Which One of the Following Measures Returns in Relation to Total