Which One of the Following Is Probably the Best Measure

question 14

Multiple Choice

Which one of the following is probably the best measure of the performance of a well-diversified portfolio?

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

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Definitions:

Grapefruit

A large, tart citrus fruit with a segmented, juicy interior, often eaten for breakfast or used in culinary recipes.

Equilibrium Price

The price point in the market where the amount of goods being offered is the same as the amount of goods being sought by consumers.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price.

Demand Shifts

Changes in the demand curve due to factors other than the price of the good itself, such as changes in consumer preferences, income, or the prices of related goods.