B IS CORRECT. THE SHARPE RATIO IS A MEASURE BASED ON THE PORTFOLIO...

10. B is correct. The Sharpe ratio is a measure based on the portfolio return in excess of a

riskless rate with the volatility of the portfolio return. The ratio provides a measure of how

much the investor is receiving in excess of a riskless rate for assuming the portfolio risk.

Sections 3.1-3.2. LO.b.