All of the following statements about Sharpe ratio are correct EXCEPT _.

Group of answer choices

Sharpe ratio measures the reward (or risk premium) for per unit of risk.

Optimal risky portfolio is the risky portfolio that has the highest Sharpe ratio.

Sharpe ratio is used on the fund sponsor/administrator level for asset allocation.

Sharpe ratio can be used to evaluate whether an active portfolio outperforms its benchmark on a risk-adjusted basis.