Question: Treynor and alpha differ from Sharpe in that A) Treynor and alpha use beta as the measure of risk, while Sharpe uses standard deviation. B)

Treynor and alpha differ from Sharpe in that

A)

Treynor and alpha use beta as the measure of risk, while Sharpe uses standard deviation.

B)

Sharpe uses beta as the measure of risk, while Treynor and alpha use standard deviation.

C)

Treynor and alpha do not differ from Sharpe in how they measure risk.

D)

Treynor and alpha are both absolute performance measurements, while Sharpe is a relative performance measurement model.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!