For a Poorly Diversified Portfolio the Appropriate Measure of Portfolio

question 91

Multiple Choice

For a poorly diversified portfolio the appropriate measure of portfolio performance would be

• A) The Treynor measure because it evaluates portfolio performance on the basis of return and diversification.
• B) The Sharpe measure because it evaluates portfolio performance on the basis of return and diversification.
• C) The Treynor measure because it uses standard deviation as the risk measure.
• D) The Sharpe measure because it uses beta as the risk measure.
• E) None of the above.

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Definitions:

Leader's Power

The capacity of a leader to influence the behavior of others, obtain compliance, and achieve organizational goals.

Influencing Employees

The process of guiding or motivating employees to achieve organizational goals or adopt specific behaviors.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant.

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people, varying from authoritative to participative or delegative.