The Measure of Performance Defined as the Difference Between a Fund's

question 26

Multiple Choice

The measure of performance defined as the difference between a fund's excess return and a point on the market line corresponding to the fund's beta is called:

• A)alpha.
• B)average differential return.
• C)the Jensen measure.
• D)More than one of the above

---

Definitions:

Inspected

To have been examined or reviewed carefully, especially to ensure compliance with standards and regulations.

Installment

A method of payment or delivery of goods in parts or portions at agreed intervals over a period of time, usually including interest in the case of financial transactions.

Breached

The act of violating or failing to observe a law, agreement, or code of conduct, often resulting in legal action or disputes.

Cure

The act of resolving a breach or default in a contract or agreement to restore its performance to good standing.