The Sharpe, Treynor, and Jensen Portfolio Performance Measures Are Derived

question 7

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 use 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 attributes.
• D)therefore, it does not matter which measure is used to evaluate a portfolio manager; however, the Sharpe and Treynor measures use different risk measures, so therefore, the measures vary as to whether or not they are appropriate, depending on the investment scenario.
• E)None of the options

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Definitions:

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritized over long-term gain.

Rational Means

Methods or actions that are based on logic or reasoning rather than emotion or desire.

Psychosexual Stages

Five stages of personality development proposed by Freud and tied to the sexual development of the child.

Erogenous Zones

Erogenous zones are areas of the body that elicit sexual arousal when touched or stimulated.