According to Jensen's Differential Return Measure, What Is Alpha

question 7

Multiple Choice

According to Jensen's differential return measure, what is alpha?

• A) The intercept of the SML line
• B) The intercept of the CML line
• C) A measure of the superior or inferior performance on a portfolio
• D) The actual excess return on a portfolio during one period

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Definitions:

Decoding

The process by which a receiver interprets and understands a message sent by a communicator.

Communication Process

The sequence of steps by which information is exchanged between senders and receivers, encompassing the transmission of messages and feedback.

Channels of Communication

The mediums through which information is transmitted from a sender to a receiver, such as emails, phone calls, and social media.

PlayStation 5

A next-generation video game console developed by Sony Interactive Entertainment, known for its advanced graphics, high-speed storage, and immersive gameplay experiences.