Which of the Following Statements About Jensen's Measure Are Correct

question 63

Multiple Choice

Which of the following statements about Jensen's measure are correct?
I. Through its use of the capital asset pricing model, Jensen's measure automatically adjusts for market return.
II. In general, the higher the Jensen's measure, the better a portfolio has performed.
III. Jensen's measure is referred to as alpha.
IV. A positive Jensen's measure indicates an investment has underperformed the market on a risk-adjusted basis.

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

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Definitions:

Beta Particle

A beta particle is a high-energy, high-speed electron or positron emitted by certain types of radioactive nuclei during radioactive decay.

Cytotoxic

Refers to substances or cells that are toxic or destructive to living cells.

Gamma Emitter Isotopes

Isotopes that decay by emitting gamma rays, a form of electromagnetic radiation, from their nucleus.