What Does PIP Refer to in the Performance Management Process

question 55

Multiple Choice

What does PIP refer to in the performance management process?

• A) Performance implementation policy
• B) Performance incident procedure
• C) Performance increase in pay
• D) Performance improvement plan
• E) Performance installation process

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Definitions:

Zero-Beta Security

A financial instrument whose returns are not correlated with those of the market, meaning it has a beta of zero, thus not contributing to portfolio volatility.

Expected Return

The probability-weighted average of the possible outcomes.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Alpha

In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.