Which One of the Following Measures a Security's Return in Relation

question 1

Multiple Choice

Which one of the following measures a security's return in relation to the total risk associated with that security?

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

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Definitions:

Mere-Exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Reciprocal Liking

The phenomenon where people tend to like others who like them back.

Proximity

The physical closeness or distance between people or objects, often influencing relationships and interactions.

Physical Availability

The degree to which a product or service can be obtained by the consumer, often relating to its distribution, placement, and stock levels in the marketplace.