Which One of the Following Measures a Security's Return in Relation

question 1

Multiple Choice

Which one of the following measures a security's return in relation to the total risk associated with that security?

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

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Definitions:

Closing Entries

The journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the books for the next period.

Retained Earnings

Profits that a company keeps to use within the business after dividends have been paid out to shareholders.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may or may not align with the calendar year.

Goods Sold

Goods sold refers to the total quantity of goods that a company has sold to its customers during a specific accounting period.