Diversification and Sharpe Ratio

Why does the Sharpe ratio assume a diversified portfolio, and what makes it a poor measure of the return/risk trade-off for less diversified portfolios?

I’m wondering if it’s related to the assumption of normally distributed returns.

@S2000magician any insight on this one, sir?

normal distrivution… but thats a quick guess.its a poor risk/return trade off measure,really?

oh! im the wrong group! ignore my answer.