Information Ratio Portfolio Performance Measures

question 83

Multiple Choice

Information ratio portfolio performance measures

• A) Adjust portfolio risk to match benchmark risk.
• B) Compare portfolio returns to expected returns under CAPM.
• C) Evaluate portfolio performance on the basis of return per unit of risk.
• D) Indicate historic average differential return per unit of historic variability of differential return.
• E) None of the above.

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Definitions:

Cocaine

A powerful, addictive stimulant drug derived from the leaves of the coca plant, which is native to South America.

Stillbirth

The delivery of a baby who has died in the womb after 20 weeks of pregnancy, distinguished from earlier pregnancy loss, which is typically referred to as a miscarriage.

Prematurity

The condition of being born before the completion of 37 weeks of gestation, often associated with various health challenges.

Thalidomide

A medication that caused birth defects when taken by pregnant women, leading to severe limb deformities in newborns.