During the 1986-2013 period, the Sharpe ratio was lowest for which of the following asset classes?
A) small U.S. stocks
B) large U.S. stocks
C) long-term U.S. Treasury bonds
D) equity world portfolio in U.S. dollars

Question

Quizplus · Accepted Answer

The Sharpe ratio measures the excess return per unit of risk, with risk measured by volatility. During the 1986-2013 period, long-term U.S. Treasury bonds had the lowest Sharpe ratio, indicating lower excess return per unit of risk compared to the other asset classes.

During the 1986-2013 Period, the Sharpe Ratio Was Lowest for Which