The Sharpe, Treynor, and Jensen Portfolio Performance Measures Are Derived

question 28

Multiple Choice

The Sharpe, Treynor, and Jensen portfolio performance measures are derived from the CAPM,

• A)therefore, it does not matter which measure is used to evaluate a portfolio manager.
• B)however, the Sharpe and Treynor measures use different risk measures.Therefore, the measures vary as to whether or not they are appropriate, depending on the investment scenario.
• C)therefore, all measure the same attributes.
• D)therefore, it does not matter which measure is used to evaluate a portfolio manager.However, the Sharpe and Treynor measures use different risk measures, so therefore, the measures vary as to whether or not they are appropriate, depending on the investment scenario.

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Definitions:

Energizing Emotions

Emotions that motivate or drive an individual towards action, often associated with positive feelings like enthusiasm or excitement.

Extraversion

A personality trait characterized by outgoingness, sociability, and a high level of activity; individuals high in extraversion tend to seek stimulation and the company of others.

Neuroticism

A personality trait characterized by sadness, moodiness, and emotional instability, often resulting in a higher propensity for experiencing negative emotions such as anxiety, anger, or depression.

Cognitive Control

The mental ability to regulate and manage thoughts, behaviors, and emotions in order to achieve goals or respond to environmental demands.