Rather Than Getting an Additional 4% Per Hour, Steven Was

question 52

Short Answer

Rather than getting an additional 4% per hour, Steven was given a $1000 bonus for his performance over the past year, also known as a ________ bonus.

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Definitions:

Risk-Free Return

The return on an investment with no risk of financial loss, typically associated with government bonds.

Treynor Measure

A performance metric on investment funds that accounts for the risk taken by the investment relative to the market risk as measured by beta.

Risk-Free Return

The theoretical rate of return of an investment with zero risk of financial loss.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and size of cash flows, providing a more accurate measure of personal investment performance.