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:

SIMPLE Plans

Savings Incentive Match Plan for Employees, a type of retirement plan that allows both employee and employer contributions.

Nondiscrimination Rules

Regulations ensuring that benefits, services, or opportunities are provided fairly and without bias to all eligible individuals within certain contexts, such as employment or insurance.

Roth IRA

A type of individual retirement account allowing for tax-free withdrawals of contributions and earnings, provided certain conditions are met.

Tax-free

Earnings on which no tax is due to the government. This can include certain types of interest, inheritance, or gifts.