Sharpe's Measure of Portfolio Performance Compares the Risk Premium on a Portfolio

question 104

Multiple Choice

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to

• A) a broad-based market index such as the S&P 500 index.
• B) the portfolio's standard deviation of return.
• C) the portfolio's beta.
• D) the prevailing risk-free rate of return.

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Definitions:

Conceptual Replication

A type of replication of research using different procedures for manipulating or measuring the variables.

Conceptual Replication

Attempting to validate the findings of a previous study by using different methods or measures while keeping the underlying theory or hypothesis the same.

Generalization Problem

The issue faced when trying to apply the findings from research studies to broader contexts or different groups than those studied.

Purposive Sampling

A non-probability sampling method in which the researcher selects participants based on specific criteria and the purpose of the research.