Which One of the Following Is Measured by the Jensen-Treynor

question 3

Multiple Choice

Which one of the following is measured by the Jensen-Treynor alpha?

• A)total return relative to systematic risk
• B)risk premium relative to systematic
• C)risk premium relative to total risk
• D)excess return relative to systematic risk
• E)excess return relative to total risk

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Definitions:

Rafts

Platforms or structures made of buoyant materials, often wood, used for transport or as a floating base.

Main Purpose Rule

A legal principle stating that if the main purpose of a transaction is to benefit the guarantor, then a written agreement isn't necessary to enforce the guaranty.

Debt

An amount of money borrowed by one party from another, with the condition that it is to be paid back, often with interest.

Enforceable

A legal term referring to a contract or agreement that is recognized by law and can be upheld in a court of law.