Which of the Following Measures Should Be Used to Determine

question 65

Multiple Choice

Which of the following measures should be used to determine if a security should be included in a master portfolio?
I. Sharpe ratio
II. Treynor ratio
III. Jensen's alpha

• A)I only
• B)II only
• C)III only
• D)I and II only
• E)II and III only

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Definitions:

Critical Thinking Process

A method of objectively analyzing and evaluating an issue or situation to form a judgment.

Recursive and Dynamic Levels

Refers to processes or structures that are repeated or evolve over time, where each level is built upon or interacts with previous ones.

Beginner's Mind

An approach to life and learning characterized by openness, eagerness, and lack of preconceptions, even at advanced levels of achievement.

Zen Master Suzuki

A reference to Shunryu Suzuki, a Sōtō Zen monk and teacher who helped popularize Zen Buddhism in the United States in the 20th century.