All else equal, investors prefer to choose from portfolios having higher Sharpe ratios.

Name: All else equal, investors prefer to choose from portfolios having higher Sharpe ratios.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

The Sharpe ratio is a measure of risk-adjusted return, where a higher ratio indicates greater return per unit of risk. Therefore, all else equal, investors would prefer portfolios with higher Sharpe ratios as it indicates a better risk-return trade-off.

All Else Equal, Investors Prefer to Choose from Portfolios Having