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Sheryl is suffering from obsessive-compulsive disorder. Her doctor prescribes her a drug. Which of the following drugs is she most likely taking?
Sharpe Measure
A method to evaluate the risk-adjusted return of an investment, comparing portfolio excess return to the standard deviation of the portfolio.
Excess Returns
The return on an investment above the return expected from risk-free investments or the market's benchmark.
Risk-free Asset
An investment that is assumed to have no risk of financial loss, often exemplified by government bonds.
Kurtosis
A statistical measure that describes the shape of a distribution's tails in relation to a normal distribution, indicating the potential for extreme outcomes.
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