Jensen’s alpha
Treynor’s variance to volatility ratio
Sharpe’s reward to variability ratio
Treynor’s reward to volatility ratio
✅ The correct answer is C.
An average return of portfolio divided by its standard deviation is classified as Sharpe’s reward to variability ratio. The sharpe ratio definition is the excess return or risk premium of a well diversified portfolio or investment per unit of risk. Measure sharpe ratio using standard deviation. You may also know this ratio as the reward to variability ratio or the reward to volatility ratio.
An average return of portfolio divided by its standard deviation is classified as Sharpe’s reward to variability ratio. The sharpe ratio definition is the excess return or risk premium of a well diversified portfolio or investment per unit of risk. Measure sharpe ratio using standard deviation. You may also know this ratio as the reward to variability ratio or the reward to volatility ratio.