In the Characteristic Selectivity (CS)performance Measure

question 75

Multiple Choice

In the Characteristic Selectivity (CS) performance measure,

• A) Portfolio performance is measured by assessing the quality of services provided by money managers by looking at adjustments made to the content of their portfolios.
• B) Portfolio performance is measured by examining both unsystematic and systematic risk.
• C) Portfolio performance is measured by comparing the returns of each stock in the portfolio to the return of a benchmark portfolio. With the same aggregate investment characteristics as the security in question.
• D) Portfolio performance is measured on the basis of return per unit of risk.
• E) Portfolio performance is measured on the basis of historic average differential return per unit of historic variability of differential return.

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Definitions:

Pollution

The contamination of the natural environment by substances or energies that cause adverse effects on living organisms and ecosystems.

Marginal Social Benefit

The increased benefit for the public from producing or consuming an extra unit of a good or service.

Marginal Social Benefit

The additional benefit to society as a whole from the consumption of one more unit of a good or service.

Marginal Social Cost

The additional cost incurred by society as a whole due to producing one more unit of a good or service.