Relative Return Portfolio Performance Measures

question 7

Multiple Choice

Relative return portfolio performance measures

• A) Adjust portfolio risk to match benchmark risk.
• B) Compare portfolio returns to expected returns under CAPM.
• C) Evaluate portfolio performance on the basis of return per unit of risk.
• D) Indicate historic average differential return per unit of historic variability of differential return.
• E) None of the above.

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Definitions:

Cooperative Ownership

A form of property ownership where individuals own shares of a corporation that owns the property, providing members use rights.

Proprietary Lease

A lease agreement in a cooperative (co-op) building in which the resident is given the right to occupy a unit by holding shares in the cooperative rather than owning the unit outright.

Tenancy In Common

A form of joint ownership of property by two or more persons, where each owner has an undivided interest in the property and is entitled to an equal share of profits, but with no right of survivorship.

Equal Rights

The principle that all people should be treated equally under the law without discrimination.