Sharpe ratio is most helpful when

A. we measure the risk of a portfolio. B. measuring standard deviation of inflation risk C. measuring relation of real returns to risk D. measuring how returns change when beta increases E. measuring how returns decline when risk increases 4 points

QUESTION 24 Which of the following statements is FALSE? I. Investors that dislike risk will reject a risky investment II. Investors that like risk will take any risky investment III. Investors that dislike risk care only about risk of an investment IV. Investors that dislike risk care about expected return only.

A. I only B. II only C. I, III and IV only D. II, III and IV only E. I, II, and IV only 4 points

QUESTION 25 Which of the following is not true regarding equity mutual funds? I. invest only in stocks and bonds II. invest in domestic stock and international bonds III. a mutual fund can hold derivatives only with growth stocks IV. a mutual fund cant hold commodities

A. I only B. II and III only C. III and IV only D. I, III and IV only E. I, II, III and IV