What Would Be the Best Way for a Parent to Explain

question 4

Multiple Choice

What would be the best way for a parent to explain to a toddler that he needs to receive the influenza vaccine at today's appointment?

• A) "You need the shot to keep you healthy. You will feel a little pinch when you get the shot."
• B) "You need the shot to prevent the flu. They will use a small needle to administer the shot. It will not take long."
• C) "You need a shot, but don't worry, you won't feel a thing."
• D) "No, you will not get any needles today."

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Definitions:

Sharpe Measure

A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.

S&P 500 Index

A stock market index in the United States composed of the market values of 500 major companies listed on either the New York Stock Exchange or NASDAQ.

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.