Question 873 Sharpe ratio, Treynor ratio, Jensens alpha, SML, CAPM
Which of the following statements is NOT correct? Fairly-priced assets should:
(a) Have Sharpe ratios equal to the market’s.
(b) Have Treynor ratios equal to the market's.
(c) Have Jensen’s alphas that are zero.
(d) Not necessarily be bought or sold since there's no gain either way.
(e) Plot on the Security Market Line (SML).
Copyright © 2014 Keith Woodward