Which One of the Following Is Computed by Dividing a Portfolio's

question 40

Multiple Choice

Which one of the following is computed by dividing a portfolio's risk premium by the portfolio beta?

• A)raw return
• B)Value-at-Risk
• C)Jensen's alpha
• D)Sharpe ratio
• E)Treynor ratio

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Definitions:

Number Of Sellers

The quantity of providers or sellers in a market, affecting competition and pricing dynamics.

Monopolistic Competitor

A type of market structure where many companies sell products that are similar but not identical, allowing for competition on factors other than price.

Short Run

A period in economics during which at least one factor of production is fixed, focusing on immediate effects in production and pricing.

Long Run

A period in economics where all inputs can be adjusted, allowing for full analysis of production, pricing, and employment levels.