Which Metric Measures How Volatile a Fund's Returns Are Relative

question 59

Multiple Choice

Which metric measures how volatile a fund's returns are relative to its benchmark?

• A)Jensen's alpha
• B)information ratio
• C)Tracking error
• D)Sharpe ratio
• E)Treynor ratio

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Definitions:

AV Node

A part of the heart's electrical system that helps regulate the heart rate by delaying the transmission of electrical impulses.

SA Node

The sinoatrial node, often referred to as the SA Node, is the natural pacemaker of the heart. It generates electrical impulses that initiate the heartbeat, controlling heart rhythm.

Atrioventricular Bundle

A bundle of heart muscle fibers responsible for conducting electrical impulses from the atria to the ventricles of the heart.

Arterial Wall

The layer of tissue constituting the outer structure of an artery, comprising three layers: the intima, media, and adventitia, crucial in maintaining blood pressure and circulation.