Consider the Sharpe and Treynor performance measures.When a pension fund is large
And has many managers,the __________ measure is better for evaluating individual managers while the __________ measure is better for evaluating the manager of a small fund with only one manager responsible for all investments.
A)Sharpe,Sharpe
B)Sharpe,Treynor
C)Treynor,Sharpe
D)Treynor,Treynor

Question

Quizplus · Accepted Answer

The Treynor measure is the superior measure if the portfolio is a small portion of many portfolios combined into a large investment fund.The Sharpe measure is superior if the portfolio represents the investor's total risky investment position.

Consider the Sharpe and Treynor Performance Measures