Which Concept Is Correctly Matched with Its Definition

question 16

Multiple Choice

Which concept is correctly matched with its definition?

• A)stressor - the stress response to undesirable or unpleasant events
• B)stress - a stimulus that causes a physiological, psychological, or emotional reaction
• C)eustress - the stress response to agreeable or pleasant events
• D)distress - the stress response to a neutral event

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Definitions:

Treynor's Measure

A performance metric for determining how well an investment portfolio has compensated the investor for the risk taken, using beta as the risk measure.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government bonds or bills, serving as a benchmark for assessing investment performance.

Information Ratio

This ratio measures the excess return of a portfolio over the benchmark's return, relative to the volatility of those excess returns, indicating the portfolio manager's ability to generate consistent excess returns.

Risk-Free Return

The theoretical return on investment with no risk of financial loss, often represented by the yield on government securities.