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Consider the Sharpe and Treynor Performance Measures

Question 1

Multiple Choice

Consider the Sharpe and Treynor performance measures.When a pension fund is large and well diversified in total and it 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 that may not be fully diversified.


A) Sharpe; Sharpe
B) Sharpe; Treynor
C) Treynor; Sharpe
D) Treynor; Treynor

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