Information Ratio Portfolio Performance Measures

question 83

Multiple Choice

Information ratio portfolio performance measures

• A) Adjust portfolio risk to match benchmark risk.
• B) Compare portfolio returns to expected returns under CAPM.
• C) Evaluate portfolio performance on the basis of return per unit of risk.
• D) Indicate historic average differential return per unit of historic variability of differential return.
• E) None of the above.

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Definitions:

Niche Construction

The process in which organisms, through their own behaviors, alter the environment and create their own circumstances.

Social Alliances

Relations or partnerships formed between individuals or groups for mutual benefit or to achieve common goals.

Highly Stereotyped

Referring to actions or behaviors that are very predictable and lack variation.

New Shelters

Structures or locations designated as places of safety or refuge, commonly used to refer to housing solutions for the homeless or victims of disasters.