Question 2 Q: 2 Which statement best describes the Sharpe ratio? Options A: It compares the return of the portfolio with the return of the market as a whole, relative to the portfolio's risk as measured by its standard deviation. B: It compares the return of the portfolio with the riskless rate of return, relative to the portfolio's risk as measured by its standard deviation. C: It compares the return of the portfolio with the return of the market as a whole, relative to the portfolio's risk as measured by its beta. D: It compares the return of the portfolio with the riskless rate of return, relative to the market's risk as measured by its standard deviation. Save Question Show Answer Discussion 0 Clear Discussion Most voted Newest No comments yet. Be the first to comment. Post Be respectful. No spam. Correct Answer: B Explanation :
