The table below gives statistics relating to a hypothetical 10-year record of two portfolios.Assume other statistics relating to these portfolios are the same and the risk-free rate is 3.5%.Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is: ________________________________________. Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is ______________________________________________.
A) Portfolio A becauseit has a higher coefficient of variation and a lower Sharpe ratio
B) Portfolio A because it has a lower coefficient of variation and a higher Sharpe ratio
C) Portfolio B because it has a higher coefficient of variation and a lower Sharpe ratio
D) Portfolio B because it has a lower coefficient of variation and a higher Sharper ratio

Question

The table below gives statistics relating to a hypothetical 10-year record of two portfolios.Assume other statistics relating to these portfolios are the same and the risk-free rate is 3.5%.Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is: ________________________________________.  Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is ______________________________________________.
A) Portfolio A becauseit has a higher coefficient of variation and a lower Sharpe ratio 
B) Portfolio A because it has a lower coefficient of variation and a higher Sharpe ratio 
C) Portfolio B because it has a higher coefficient of variation and a lower Sharpe ratio 
D) Portfolio B because it has a lower coefficient of variation and a higher Sharper ratio

Quizplus · Accepted Answer

The Answer of The table below gives statistics relating to a hypothetical 10-year record of two portfolios.Assume other statistics relating to these portfolios are the same and the risk-free rate is 3.5%.Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is: ________________________________________.  Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is ______________________________________________.
A) Portfolio A becauseit has a higher coefficient of variation and a lower Sharpe ratio 
B) Portfolio A because it has a lower coefficient of variation and a higher Sharpe ratio 
C) Portfolio B because it has a higher coefficient of variation and a lower Sharpe ratio 
D) Portfolio B because it has a lower coefficient of variation and a higher Sharper ratio

The Table Below Gives Statistics Relating to a Hypothetical 10-Year