Which one of the following performance measures is the Sharpe measure?
A) Average excess return to beta ratio
B) Average excess return to standard deviation ratio
C) Alpha to standard deviation of residuals ratio
D) Average return minus required return

Question

Quizplus · Accepted Answer

The Sharpe measure is calculated as the average excess return to standard deviation ratio. This measures the excess return an investor receives per unit of risk, with risk measured as standard deviation.

Which One of the Following Performance Measures Is the Sharpe