Portfolio and Investment Performance Flashcards by Layan Al-Sabi | Brainscape

Q

What is the Sharpe Ratio?

A

Measures the number of units of additional unit of risk.

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Asset Sharpe Ratio

A

SR= (Return - Risk free Return)/ Standard Deviation

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Methods of comparing Asset and Return

A

Return (and price) time series
Scatterplots of two assets’ returns
Considering how returns move togethers:
covariance, correlation and diversification

How well did you know this?

1

Not at all

2

3

4

5

Perfectly