Question: In computing portfolio performance, the Sharpe ratio uses_______, while the Treynor Index uses______ for the risk measure. (published CFP question, 1994) Standard Deviation Variance Correlation

In computing portfolio performance, the Sharpe ratio uses_______, while the Treynor Index uses______ for the risk measure. (published CFP question, 1994)

  1. Standard Deviation
  2. Variance
  3. Correlation coefficient
  4. Coefficient of variation
  5. Beta

a. (1);(3)

b. (5);(1)

c. (1); (5)

d. (1);(4)

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