Which One of the Following Statements Is Correct If a Portfolio

question 39

Multiple Choice

Which one of the following statements is correct if a portfolio has a Jensen measure of return of zero?

• A) The market provides a better return on a risk- adjusted basis.
• B) The portfolio outperformed the market on a risk- adjusted basis.
• C) The portfolio earned exactly its expected return on a risk- adjusted basis.
• D) The portfolio has a total return of zero percent.

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Definitions:

Deep Commitment

A profound dedication or strong emotional bond to a cause, activity, or another person.

Shoplifts

The act of stealing goods from a store, violating legal or ethical standards.

Plans And Commits

The process of devising a course of action and then executing it, particularly in the context of achieving a specific goal or carrying out a particular task.

Professional Robber

An individual who engages in theft or burglary as a primary occupation, often with a high level of skill or planning.