Which of the Following Measures Are Dependent Upon the Accuracy

question 83

Multiple Choice

Which of the following measures are dependent upon the accuracy of a security's beta?
I. Sharpe ratio
II. Treynor ratio
III. Jensen's alpha

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

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Definitions:

Corporate-Level

Pertaining to decisions, strategies, and processes that affect the entire organization, as opposed to those affecting only individual departments or regions.

Functional

Relating to the practical or useful aspects of something, especially its use or purpose.

Business-Level Strategies

The tactics and approaches a business adopts to compete effectively in a particular market, focusing on achieving competitive advantage.

Corporate Strategy

The overarching plan and scope of an organization aimed at achieving long-term business objectives and competitive advantage.