Based on Jensen's Measure, Superior Portfolio Performance Is Exhibited by A

question 12

Multiple Choice

Based on Jensen's measure, superior portfolio performance is exhibited by a:

• A) statistically significant positive alpha.
• B) statistically significant negative alpha.
• C) zero alpha.
• D) low positive alpha.

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Definitions:

Debt/Equity Ratio

An indicator for evaluating a company's use of financial leverage, obtained by dividing the firm's overall liabilities by the equity of its shareholders.

Net Income

The earnings of a company after all expenses, including taxes and operational costs, have been deducted from revenues, reflecting the company's profit.

Accounts Receivable

The amount that debtors are required to pay to a company for the goods or services they have received but have not yet compensated for.