The Sharpe,Treynor,and Jensen Portfolio Performance Measures Are Derived from the CAPM

question 64

Multiple Choice

The Sharpe,Treynor,and Jensen portfolio performance measures are derived from the CAPM,

• A) therefore,it does not matter which measure is used to evaluate a portfolio manager.
• B) however,the Sharpe and Treynor measures used different risk measures,therefore the measures vary as to whether or not they are appropriate,depending on the investment scenario.
• C) therefore,all measure the same portfolio attributes.
• D) a and b.
• E) none of these.

Understand the concept of base-rate information and its significance in decision-making.

Recognize the impact of heuristics, such as the availability heuristic, on judgment and decision-making processes.

Identify errors in reasoning and judgment, such as overlooking base-rate information or the influence of representativeness heuristic.

Define critical thinking and its importance in evaluating evidence and making conclusions.

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Definitions:

Organized Message

A communicated message that is systematically arranged and structured for clarity and effectiveness.

Color-coding

A system for displaying information by using different colors to categorize, organize, or prioritize.

Filing System

An organized method for storing documents, files, and information so they can be easily retrieved, managed, and kept in order.

Indexing

The naming of a file.