Which of the Following Measures Should Be Used to Determine

question 65

Multiple Choice

Which of the following measures should be used to determine if a security should be included in a master portfolio?
I. Sharpe ratio
II. Treynor ratio
III. Jensen's alpha

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

---

Definitions:

Marginal Social Cost

Sum of the marginal cost of production and the marginal external cost.

Air Pollutants

Substances in the air that can cause harm to humans and the environment.

Plastic Containers

Manufactured receptacles made from plastic materials, used for storing, transporting, and packaging goods.

Economic Inefficiency

A situation where resources are not allocated in the most effective way, resulting in waste or loss of potential benefit to society.