Performance Refers to the Efficiency with Which a Product Achieves

question 61

True/False

Performance refers to the efficiency with which a product achieves its intended purpose.

---

Definitions:

Treynor Measure

A performance metric on investment funds that accounts for the risk taken by the investment relative to the market risk as measured by beta.

Risk-Free Return

The theoretical rate of return of an investment with zero risk of financial loss.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and size of cash flows, providing a more accurate measure of personal investment performance.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis, as determined by the company's board of directors.