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:

Floor Area

The total square footage of all floors within a building, including any basements or mezzanines.

Prorated Basis

An adjustment made based on dividing something proportionally, such as payments or charges, over a specified period.

Profit-Sharing Bonus

A type of incentive given to employees, typically as part of their compensation package, where they receive a share of the company's profits.

Partnership Agreement

A contract between partners in a business that outlines the terms and conditions of the relationship, including responsibilities, profit sharing, and dispute resolution.