Which Measure Would You Use to Know Whether Alpha Is

question 62

Multiple Choice

Which measure would you use to know whether alpha is truly significant or the result of random chance?

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

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Definitions:

Disruptive Mood Dysregulation Disorder

A childhood condition characterized by severe temper outbursts and persistent irritability.

Bipolar Disorder

A mental disorder marked by extreme mood swings from manic highs to depressive lows, affecting one’s energy, judgment, and ability to think clearly.

Manic Phase

A period of abnormally elevated mood, energy, and activity levels, typically seen in bipolar disorder, characterized by excessively high self-esteem, decreased need for sleep, and increased talkativeness.

Overactive

Describes a condition or behavior characterized by being excessively active or difficult to control.