appraisal ratio是什么

问题如下：

The appraisal ratio is the ratio of the portfolio’s alpha to the standard deviation of its:

选项：

total risk.

systematic risk.

non-systematic risk.

解释：

C is correct. The appraisal ratio is the ratio of the portfolio’s alpha to the standard deviation of the portfolio’s non-systematic risk. Essentially, this ratio allows an investor to evaluate whether excess returns warrant the additional non-systematic risk in actively managed portfolios.