The Only Difference Between the Sharpe and Treynor Approaches Is

question 4

Multiple Choice

The only difference between the Sharpe and Treynor approaches is that the Treynor approach evaluates excess returns based on:

• A)total risk.
• B)unsystematic risk.
• C)systematic risk.
• D)None of the above

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Definitions:

System Disparity

Differences or inequalities within or between systems that can lead to unfair outcomes or treatment.

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Social Environment

The surrounding social conditions, cultures, institutions, and interpersonal relationships that influence individuals' lives and development.

Social Sectors

Various segments of society, such as health, education, and welfare, that focus on different aspects of community support and development.