American Bankers Association Exam CTFA Topic 6 Question 5 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 5
Topic #: 6

The principal reasons for using the Sharpe ratio when calculating a portfolio's performance are:

AIt indicates the percentage return above/below the risk-free rate for each unit of risk taken

BIt will always be quoted on a rolling quarterly basis

CA positive Sharpe ratio will always guarantee positive returns

DThe higher the number, the more a portfolio manager can be said to have added value

Show Suggested Answer

Suggested Answer: A, D

by Goldie at May 10, 2022, 03:14 AM

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