Exhibit 1A-3 Straight Line

question 39

Multiple Choice

Exhibit 1A-3 Straight line
-In Exhibit 1A-3, the slope of straight line AB is:

• A) positive.
• B) zero.
• C) negative.
• D) variable.

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Definitions:

Risk Adjusted Performance

An evaluation of an investment's return after accounting for the degree of risk that was taken to achieve it.

Portfolio

An assortment of financial assets including stocks, bonds, and commodities, as well as cash and near-cash items like mutual funds and ETFs.

Sharpe Ratio

Reward-to-volatility ratio; ratio of excess return to portfolio standard deviation.

Standard Deviation

Standard Deviation is a measure of the dispersion or variability of a set of data points or investment returns around the mean.