Question 920 SML, CAPM, Sharpe ratio, Treynor ratio, Jensens alpha, no explanation
Over-priced assets should NOT:
(a) Have Sharpe ratios less than the market’s.
(b) Have Treynor ratios that are negative.
(c) Have Jensen’s alphas that are negative.
(d) Be sold.
(e) Plot below the Security Market Line (SML).
Copyright © 2014 Keith Woodward