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:

Lymphocytes

A type of white blood cell involved in the body's immune response, including T cells, B cells, and NK cells.

Norepinephrine

A neurotransmitter and hormone involved in the body’s fight or flight response, affecting attention, responses to stress, and heart rate.

Type A

The Type A personality is characterized by a constant feeling of working against the clock and an intense competitive drive, often associated with higher stress levels and a higher risk of heart disease.

Type B

Friedman and Rosenman’s term for easygoing, relaxed people.