An investor would like to evaluate the performance of her portfolio using the Sharpe ratio.The past year realised return and standard deviation of returns of the portfolio,the benchmark portfolio,given by the S&P/ASX share price index,and government bonds are:
Has the portfolio:
A)underperformed relative to the benchmark.
B)outperformed the market benchmark on a risk-adjusted basis.
C)underperformed the market benchmark on a risk-adjusted basis.
D)outperformed the Government Bonds.

Question

An investor would like to evaluate the performance of her portfolio using the Sharpe ratio.The past year realised return and standard deviation of returns of the portfolio,the benchmark portfolio,given by the S&P/ASX share price index,and government bonds are: 
Has the portfolio:
A)underperformed relative to the benchmark. 
B)outperformed the market benchmark on a risk-adjusted basis. 
C)underperformed the market benchmark on a risk-adjusted basis. 
D)outperformed the Government Bonds.

Quizplus · Accepted Answer

The Answer of An investor would like to evaluate the performance of her portfolio using the Sharpe ratio.The past year realised return and standard deviation of returns of the portfolio,the benchmark portfolio,given by the S&P/ASX share price index,and government bonds are: 
Has the portfolio:
A)underperformed relative to the benchmark. 
B)outperformed the market benchmark on a risk-adjusted basis. 
C)underperformed the market benchmark on a risk-adjusted basis. 
D)outperformed the Government Bonds.

An Investor Would Like to Evaluate the Performance of Her