If a Portfolio Manager Consistently Obtains a High Sharpe Measure

question 46

Multiple Choice

If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability

• A)is above average.
• B)is average.
• C)is below average.
• D)does not exist.

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Definitions:

Bias

A preconceived opinion or preference for or against something or someone, which can influence judgment and behavior.

Incompatible Goals

Situations in which the aims or objectives of two or more parties are at odds, creating a potential conflict.

Perception of Interference

Perception of Interference is the recognition or belief that an external force or entity is disrupting or negatively impacting one's goals, activities, or well-being.

Psychoactive Drugs

Substances that affect the mind, behavior, or perception, including both legal (prescription medications) and illegal drugs.