What does beta measure in the context of mutual funds?

"The fund's overall profitability" "The fund's inherent risk" "The fund's relative risk compared to its benchmark" "The fund's average return over a specific period"

How is a mutual fund's beta interpreted in relation to its benchmark?

"A beta of 1 indicates the fund is less risky than its benchmark" "A beta greater than 1 suggests the fund is riskier than its benchmark" "A beta less than 1 means the fund and its benchmark have the same risk profile" "Beta is not a reliable indicator of risk in mutual funds"

What is the key difference between beta and standard deviation as risk measures for mutual funds?

"Beta measures absolute risk, while standard deviation measures relative risk" "Beta considers only price-based risk, while standard deviation accounts for all types of risk" "Beta reflects the fund's volatility compared to its benchmark, while standard deviation represents the fund's inherent risk" "Beta is a more accurate measure of risk than standard deviation"

How does alpha factor into the evaluation of a mutual fund's performance?

"Alpha represents the fund's total return, regardless of risk" "Alpha measures the fund's excess return over its benchmark, adjusted for risk" "Alpha is a measure of the fund's overall volatility" "Alpha is only relevant for debt funds"

What is the significance of the Sharpe Ratio in assessing mutual funds?

"It indicates the fund's average return over a 5-year period" "It measures the fund's overall profitability, considering expenses" "It determines the fund's risk-adjusted return, highlighting the return earned per unit of risk" "It reflects the fund manager's experience and expertise"