The __________ measures the reward to volatility trade-off by dividing the average portfolio excess return by the standard deviation of returns.

A) Sharpe measure
B) Treynor measure
C) Jensen measure
D) information ratio
E) None of the options are correct.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.

Reward

Typically refers to the potential gains or returns derived from an investment or action, balanced against the risk involved.

Volatility

The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.