Which One of the Following Statements Is Correct If a Portfolio

question 75

Multiple Choice

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

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

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Definitions:

Core Competency

Fundamental strengths or unique advantages that give a business a competitive edge over others in its industry.

Area

A specific geographical region or a segment of space designated for a particular purpose or characterized by a unique feature.