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:

Explanatory Variable

A type of variable in statistical modeling that is used to explain variations in the dependent variable; it is also known as an independent variable.

Quantitative Variables

Variables that represent numerical amounts or quantities, which can be measured and expressed numerically.

Associated

Pertains to the connection or relationship between two or more variables or factors.

Response Variable

The outcome or variable of interest that is measured or observed in a study, experiment, or analysis to see how it is affected by explanatory variables.