Which one of the following values would be the most preferable as a Sharpe ratio?
A) −1.11
B) −0.89
C) 0.00
D) 0.10
E) 1.02

Name: Which one of the following values would be the most preferable as a Sharpe ratio? A) −1.11 B) −0.89 C) 0.00 D) 0.10 E) 1.02
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

The higher the Sharpe ratio, the better, as it indicates a higher return for the level of risk taken. A Sharpe ratio of 1.02 is indicative of a good risk-adjusted return. Therefore, E is the most preferable choice.

Which One of the Following Values Would Be the Most