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    Sharpe vs Treynor Measure for Diverse Portfolios with Known Beta

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    If an investor is able to determine a global beta for his portfolio and holds a portfolio that is well-diversified with international investments, which performance measure is more appropriate, the Sharpe Measure or the Treynor Measure? Why? Explain each performance measure.

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    Sortino ratio will be more appropriate since it measures the asset's risk-adjusted ...

    Solution Summary

    This solution discuses which performance measure is more appropriate between the Sharpe Measure and the Treynor Measure.