Which of the Following Should Generally Only Be Used to Evaluate

question 27

Multiple Choice

Which of the following should generally only be used to evaluate relatively diversified portfolios rather than individual securities?
I. Sharpe ratio
II. Treynor ratio
III. Jensen's alpha

• A)I only
• B)II only
• C)III only
• D)I and II only
• E)I, II, and III

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Definitions:

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

Cognitive Empathy

The capacity to understand another person's perspective or mental state without necessarily sharing their emotions.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Emotional Dissonance

The conflict or inconsistency between the emotions one feels and the emotions one expresses in a professional context.