Which One of the Following Is Probably the Best Measure

question 14

Multiple Choice

Which one of the following is probably the best measure of the performance of a well-diversified portfolio?

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

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Definitions:

Company's Management

Individuals responsible for directing and controlling a company's operations and policies to achieve its business objectives.

Auditors

Professionals who examine and verify a company's financial records and statements for accuracy and adherence to accounting standards.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with net income or loss.

Statement of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specified period.