A Company Is Convinced of the Benefits of Exercise for Its

question 16

Short Answer

A company is convinced of the benefits of exercise for its workers. Healthy employees take fewer sick days and tend to be more focused on their job. In addition, exercise enhances the workers' positive moods. The company is so persuaded of the value of exercise that it has adopted a new policy: Moving forward, all workers will be allowed to exercise during the work day for up to three hours per week.
The reasoning behind the company's exercise policy assumes which of the following?
Exercise is the most effective way to improve the moods of the workers.
The exercise that the workers would engage in will be more strenuous than the exercise they would do on their own.
Most employees will not exercise more unless they are forced to do so.
Adopting the policy will not require the company to purchase any special equipment or reallocate any office space.
The employees who would exercise during the work day are not getting enough exercise.

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Definitions:

Treynor Measure

A performance metric for determining how well an investment compensates the investor for the risk taken, considering systematic risk.

Risk-Free Return

The theoretical return of an investment with zero risk, often represented by the yield of government bonds like U.S. Treasury bonds.

Betas

A metric that assesses the systematic risk or volatility faced by a security or portfolio in contrast to the entire market.

Sharpe Measure

A ratio used to evaluate the risk-adjusted performance of an investment, considering both the return and the volatility of the investment.