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:

Domestic Currency

The legal tender or currency that is circulated for use and accepted for exchange within the domestic economy of a country.

Dollarization

The process of a country adopting the US dollar as its primary currency, either officially or unofficially, alongside or in place of its own national currency.

Foreign Currency

Money or currency used in a country other than one's own.

Physical Commodity

Tangible goods that can be traded, bought, or sold, such as oil, gold, or agricultural products.