If a Portfolio Manager Consistently Obtains a High Sharpe Measure

question 11

Multiple Choice

If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability

• A) is above average.
• B) is average.
• C) is below average.
• D) does not exist.
• E) cannot be determined based on the Sharpe measure.

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Definitions:

Behavior Modification

A process of changing or shaping behavior through various techniques and strategies, often based on principles of learning and conditioning.

Shaping

A behavioral technique involving the reinforcement of successive approximations of a desired behavior until the final target behavior is achieved.

Reinforces

Stimuli that strengthen or increase the likelihood of a behavior by being presented as a consequence of that behavior.

Calf

A young bovine animal, especially the young of the domestic cow or a young elephant, whale, hippo, or moose.