Question
The Sharpe and Treynor performance measures both calculate a portfolio's average excess return per unit of risk. Under what circumstances would it make sense to
The Sharpe and Treynor performance measures both calculate a portfolio's average excess return per unit of risk. Under what circumstances would it make sense to use both measures to compare the performance of a given set of portfolios? What additional information is provided by a comparison of the rankings achieved using the two measures?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
