The Jensen Portfolio Evaluation Measure

question 4

Multiple Choice

The Jensen portfolio evaluation measure

• A)is a measure of return per unit of risk, as measured by standard deviation.
• B)is an absolute measure of return over and above that predicted by the CAPM.
• C)is a measure of return per unit of risk, as measured by beta.
• D)is a measure of return per unit of risk, as measured by standard deviation, and is an absolute measure of return over and above that predicted by the CAPM.

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Definitions:

Pedigrees

A diagram that shows the occurrence and appearance of phenotypes of a particular gene or organism and its ancestors from one generation to the next, used in genetics.

Phenotype

A group of visible traits in a person that arise from the interplay between their genetic code and environmental factors.

Inherited

Passed down from parent to offspring through genes, referring to traits or conditions that are genetic in nature.

Autosomal Recessive

A mode of inheritance in which a trait or disorder is expressed only when two copies of a mutant gene are present, one from each parent.