Which of the Following Are Required to Measure the Performance

question 89

Multiple Choice

Which of the following are required to measure the performance of a diversified stock portfolio?
I. Price changes
II. Dividend payments
III. An appropriate index to use as a benchmark
IV. The risk-free interest rate

• A) I, III and IV only
• B) I, II and IV only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Accord And Satisfaction

An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After the payment has been accepted or other performance has been made, the “accord and satisfaction” is complete, and the obligation is discharged.

Legal Claim

A formal assertion by a party that they are entitled to some legal right or remedy.

Enforceable

Capable of being imposed or upheld by legal process or authority.

Release

A contract in which one party forfeits the right to pursue a legal claim against the other party.