In Examining the Performance of Fund Managers, the Return Measure

question 19

Multiple Choice

In examining the performance of fund managers, the return measure commonly used is:

• A)the standard deviation.
• B)the beta.
• C)excess returns.
• D)total returns.

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Definitions:

Exponentially Distributed

Pertaining to a statistical distribution characterized by a constant rate of decay or growth over time.

Random Variable

A variable whose outcomes are determined by the occurrences of a random event.

Exponential Random Variable

A type of random variable that describes the time between events in a Poisson process, representing occurrences that happen at a constant rate.

Exponentially Distributed

Describes the time between events in a Poisson point process, i.e., a process in which events occur continuously and independently at a constant average rate.