For a Forecast to Show ____, It Should Be Better

question 33

Multiple Choice

For a forecast to show ____, it should be better than one based solely on the current or the "normal" weather.

• A) skill
• B) accuracy
• C) chaos
• D) persistence

---

Definitions:

Risk-Free Return

The theoretical return of an investment with zero risk, often represented by the yield of government bonds like U.S. Treasury bonds.

Betas

A metric that assesses the systematic risk or volatility faced by a security or portfolio in contrast to the entire market.

Sharpe Measure

A ratio used to evaluate the risk-adjusted performance of an investment, considering both the return and the volatility of the investment.

Risk-Free Return

The theoretical return on investment with no risk of financial loss, typically associated with government bonds.