Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

American Bankers Association CTFA Exam - Topic 6 Question 5 Discussion

The principal reasons for using the Sharpe ratio when calculating a portfolio's performance are:
A) It indicates the percentage return above/below the risk-free rate for each unit of risk taken and D) The higher the number, the more a portfolio manager can be said to have added value
B) It will always be quoted on a rolling quarterly basis
C) A positive Sharpe ratio will always guarantee positive returns

American Bankers Association CTFA Exam - Topic 6 Question 5 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 5
Topic #: 6
[All CTFA Questions]

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

Show Suggested Answer Hide Answer
Suggested Answer: A, D

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

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Dion
7 months ago
A and D are spot on, love those metrics!
upvoted 0 times
...
Staci
7 months ago
Wait, B isn't true, right? Sharpe ratios can be annualized too!
upvoted 0 times
...
Caren
8 months ago
D makes sense, higher is better for value added!
upvoted 0 times
...
Sheldon
8 months ago
I disagree with C, a positive Sharpe ratio doesn't guarantee profits.
upvoted 0 times
...
Maile
8 months ago
A is definitely true, it shows risk-adjusted returns!
upvoted 0 times
...
Pamela
8 months ago
Hmm, I'm a bit unsure about this one. Project management involves a lot of different factors, so I'll need to think carefully about which of these options is the most essential.
upvoted 0 times
...
Santos
8 months ago
From what I studied, I believe Aviatrix Gateways can scale up but actually not scale down, so I'm going with C.
upvoted 0 times
...
Wilford
8 months ago
This seems straightforward to me. The pruning policy is set to remove Apache-licensed images, so the effect is that those images will be deleted during the next prune job. Option C is the clear answer here.
upvoted 0 times
...
Herminia
8 months ago
Okay, I've got a strategy. The expiration date is 08/10, so that means August 10th. The last day to use the product would be the last day of that month, which is August 31st.
upvoted 0 times
...

Save Cancel