n NISM Certifications
XXI NISM Series XXI-A
Medium

The 'Sharpe Ratio' is used to evaluate:

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Portfolio risk-adjusted return

    Correct answer

  2. B

    Market volatility

  3. C

    Beta of a security

  4. D

    Portfolio diversification

Why this is the answer

The Sharpe ratio measures excess return per unit of risk (standard deviation), helping compare risk-adjusted performance.

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