The Way a Concept Is Measured Could Vary Due to Which

question 4

Multiple Choice

The way a concept is measured could vary due to which of the following?

• A) location of the study
• B) person taking the measurement
• C) conversion of units
• D) person designing the study

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Definitions:

Sharpe Measure

A calculation used to understand the return of an investment compared to its risk, defined by the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns.

Information Ratio

Ratio of alpha to the standard deviation of diversifiable risk.

Active Portfolio

A portfolio management strategy where an investment manager makes specific investments with the goal of outperforming an investment benchmark index.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to the individual investment, rather than factors affecting the entire market.