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What Is the Problem with Using the Sharpe Measure for Evaluation

question 10

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What is the problem with using the Sharpe measure for evaluation of an active portfolio management strategy


Definitions:

Neurotic Trend

Patterns of behavior or thought that are characteristic of neurosis, often manifesting as irrational fears, anxieties, or obsessive acts.

Moving Toward

In psychological terms, it refers to an adaptive strategy where an individual seeks to reduce anxiety and establish security through affiliating or aligning with others.

Basic Anxiety

A pervasive feeling of insecurity and inadequacy stemming from early childhood, as posited by Karen Horney.

Neurotic Trends

Patterns of thought or behavior that are characterized by anxiety and deemed not within the normal range of psychological functioning.

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