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Match the Term or Phrase with the Best Descriptor

question 17

Multiple Choice

Match the term or phrase with the best descriptor. Use each answer once, more than once, or not at all.
-Kyoto Protocol


Definitions:

Complete Portfolio

A diverse investment portfolio that covers a wide range of securities in order to mitigate risk through diversification.

Standard Deviation

A numerical index representing the variation or spread in a collection of data points or financial returns.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio, calculated by subtracting the risk-free rate of return from the portfolio's return and dividing by the portfolio's standard deviation of returns.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by Treasury bills.

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