Relative to the Sharpe Ratio, the Sortino Ratio Will Make

question 5

Multiple Choice

Relative to the Sharpe ratio, the Sortino ratio will make a portfolio's performance look more favorable if the portfolio has experienced:

• A) fewer extreme negative returns relative to extreme positive returns.
• B) fewer extreme positive returns relative to extreme negative returns.
• C) an equal number of extreme positive and extreme negative returns.
• D) virtually no extreme negative or extreme positive returns.

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Definitions:

Lewin

Kurt Lewin, a psychologist known for his field theory in social science, emphasizing the interaction between an individual's internal state and external environment.

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The significant change and rapid advancement in society and industries due to the widespread adoption and development of computers and technology.

Cognitive Processes

Mental activities such as thinking, understanding, learning, and remembering involved in gaining knowledge and comprehension.

1960s

A decade marked by significant social, political, and cultural change, often associated with movements for civil rights, peace, and liberation.