The Jensen Measure Requires That Each Period's Rates of Return

question 52

True/False

The Jensen measure requires that each period's rates of return and risk-free rate be measured, rather than using the long-term averages as in the Treynor and Sharpe measures.

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Definitions:

Fast Food Restaurants

Eateries that offer quick service and a limited menu of convenience foods that are typically prepared and served rapidly.

Preferences

An individual's choices or inclinations regarding alternatives in various contexts, such as consumer behavior, personal tastes, or decision-making.

Main Entrees

The primary dishes of a meal, typically more substantial and complex than appetizers or side dishes.

Manager's Estimates

Approximations or judgments made by managers regarding future operational performances or outcomes.