Treynor's Measure of Portfolio Performance Focuses on

question 47

Multiple Choice

Treynor's measure of portfolio performance focuses on

• A) diversifiable risk.
• B) total risk.
• C) the standard deviation of the portfolio.
• D) non-diversifiable risk.

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues for a business, indicating financial loss.

Salary

A fixed amount of money or compensation paid to an employee by an employer in return for work performed.

Share

Represents a unit of ownership interest in a corporation or financial asset.

Capital Balances

Refers to the amounts shown in the equity section of the balance sheet, representing the owner’s investment in the business.