Question

What does Sharpe's Ratio measure in the evaluation of mutual fund performance?

a.

Return premium to variability of returns

b.

Dividend received to capital realized

c.

Standard deviation of capital gains

d.

Risk-free rate of return

Answer: (a).Return premium to variability of returns Explanation:Sharpe's Ratio measures the ratio of the risk premium to the variability of returns.

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Q. What does Sharpe's Ratio measure in the evaluation of mutual fund performance?

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