Which of the Following Is the Final Measure Used to Evaluate

question 50

Multiple Choice

Which of the following is the final measure used to evaluate a portfolio manager's performance using the Jensen approach?

• A)Alpha ONLY
• B)Alpha and the standard deviation
• C)Standard deviation
• D)None of the above

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Definitions:

Operating Activities

Activities directly related to the core business functions of producing and delivering goods and services, which influence the cash flow from operations on a company's cash flow statement, highlighted by a secondary explanation emphasizing its financial impact.

Net Income

The amount of revenue that remains after subtracting all expenses, taxes, and costs from total revenue.

Nonoperating Items

Financial gains or losses arising from activities not related to a company's core business operations.

Direct Method

A cash flow statement preparation method that lists major classes of gross cash receipts and payments.