INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 54

Essay

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-It is very difficult to recover the cost of home improvements like [kitchen improvements | adding a swimming pool].

---

Definitions:

Information Ratio

This ratio measures the excess return of a portfolio over the benchmark's return, relative to the volatility of those excess returns, indicating the portfolio manager's ability to generate consistent excess returns.

Risk-Free Return

The theoretical return on investment with no risk of financial loss, often represented by the yield on government securities.

Sharpe's Measure

A metric used to evaluate the risk-adjusted return of an investment, calculating the excess return per unit of deviation in an investment.

Risk-Free Return

The return on investment that is guaranteed, with no risk of financial loss.