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:

Dangerous

A description of something that could potentially cause harm or injury.

Psychiatric Distress

A state of emotional suffering often related to mental health issues, necessitating professional psychiatric intervention.

Minority Status

A social position held by members of a societal group that is systematically disadvantaged or marginalized.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by severe anxiety, flashbacks, and nightmares.