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:

Jigsaw Technique

An instructional strategy designed to promote cooperative learning by having students work in small groups to complete a task, each contributing a unique piece of information.

Reciprocity

A social norm of responding to a positive action with another positive action, fostering mutual benefit and cooperation.

Intergroup Conflict

A situation where members of different groups experience friction, opposition, or even hostility, often fueled by competition for resources or differences in values.

Theories

Systematically organized principles designed to explain and predict phenomena, based on observation, experimentation, and reasoning.