The Touch We Use on an Everyday Basis, Such as a Handshake

question 13

Multiple Choice

The touch we use on an everyday basis, such as a handshake to say hello or good-bye, is called ______.

• A) hybrid
• B) accidental
• C) ritualistic
• D) playful

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Definitions:

Risk-Free Return

The theoretical return on an investment with zero risk of financial loss, often represented by the return on government securities.

Treynor's Measure

A performance metric for determining how well an investment portfolio has compensated the investor for the risk taken, using beta as the risk measure.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government bonds or bills, serving as a benchmark for assessing investment performance.

Information Ratio

This ratio measures the excess return of a portfolio over the benchmark's return, relative to the volatility of those excess returns, indicating the portfolio manager's ability to generate consistent excess returns.