The Existence of Which of the Following Leads to an Overestimate

question 30

Multiple Choice

The existence of which of the following leads to an overestimate of the number of persons in poverty?

• A)reported income
• B)in-kind benefits received by the poor
• C)uncounted homeless persons
• D)taxes

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Definitions:

Risk-Adjusted Return

A measure of the return on an investment relative to the risk taken, often used to compare the performance of investment options.

Sharpe Measure

An alternative term for the Sharpe Ratio, providing an assessment of an investment's risk-adjusted return by calculating the excess return per unit of risk.

Beta

A tool for appraising the degree of volatility or systemic risk involved in a security or portfolio relative to the market at large.

Treynor Measure

A ratio used to evaluate the returns of a portfolio or investment adjusted for risk, taking into account the risk-free rate and market volatility.