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

Use probability to make predictions about outcomes and expectations in specific scenarios.

Interpret the results of probability calculations in the context of the given problem.

Practice and apply mathematical reasoning to solve probability problems.

Understand various negotiation strategies and tactics, including their appropriate contexts and outcomes.

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Definitions:

Worse

indicates a lower quality or more negative condition compared to another situation, condition, or outcome.

Better

An improved or superior condition, quality, or performance compared to a previous state.

High

A state of being under the influence of drugs or substances, which alters mood, perception, or consciousness.

Medium

A substance or material that carries or conducts something, such as waves or messages.