Which Measure Would You Use to Know Whether Alpha Is

question 36

Multiple Choice

Which measure would you use to know whether alpha is truly significant or just the result of random chance?

• A) Jensen's alpha
• B) Information ratio
• C) Jensen-Treynor alpha
• D) Sharpe ratio
• E) Treynor ratio

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Definitions:

Growth Spurt

A rapid increase in growth, typically occurring during puberty.

Stunted

Impeded growth or development in living organisms or processes, often due to environmental constraints or nutritional deficiencies.

Middle Childhood

A developmental stage covering children from approximately 6 to 12 years old, marked by significant growth in cognitive, emotional, and social areas.

Rapid Growth

A significant increase in size, capacity, or numbers in a short period of time, often used in the context of economic, biological, or population growth.