Question 9 of 9
Which of the following is a measure of the risk-adjusted returns of a mutual fund scheme?
A
Standard deviation
B
Beta
C
Variance
D
Sharpe ratio
Correct Option:
D
Explanation
The Sharpe ratio is a widely used measure of risk-adjusted return. It indicates how much excess return a fund generates for each unit of total risk undertaken, allowing investors to compare the efficiency of different investment options.
