Neehara Recently Opened a Premium Bakery

question 86

Multiple Choice

Neehara recently opened a premium bakery.She did not have enough savings and hence she applied for a loan to obtain the additional funds required to start the bakery.She had to provide her house as collateral to obtain the loan.The type of financing obtained by Neehara can be regarded as a _____.

• A)mortgage
• B)trade credit
• C)mutual fund
• D)non-recourse loan
• E)dividend

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Definitions:

Alpha Coefficient

A measure of the performance on a risk-adjusted basis, calculating how much a portfolio or investment has returned in comparison to the overall market or a benchmark index.

Beta Coefficient

An indicator of how much a stock's price fluctuates in comparison to the general market, representing its risk relative to the market norm.

Treynor-Black Model

A portfolio optimization model that blends passive and active management strategies to try to achieve excess returns with an acceptable level of risk.

Alpha Coefficient

A measure of the performance on a risk-adjusted basis of an investment portfolio, indicating excess return over the benchmark.