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 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The total return of a portfolio

  2. The risk-adjusted return of a portfolio

    Correct answer

  3. C

    The liquidity of a security

  4. D

    The dividend yield of a stock

Why this is the answer

It measures excess return per unit of risk.

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