Which One of the Following Is Computed by Dividing a Portfolio's

question 40

Multiple Choice

Which one of the following is computed by dividing a portfolio's risk premium by the portfolio beta?

• A)raw return
• B)Value-at-Risk
• C)Jensen's alpha
• D)Sharpe ratio
• E)Treynor ratio

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Definitions:

Operating Capacity

The maximum output that a company can produce under normal conditions within a given time period.

Undrawn Borrowing Facilities

Credit facilities available to an entity that have not yet been utilized or drawn down.

Cash Receipts

Money received by a business during a particular period, including revenues from sales, loan proceeds, and cash from other sources.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.