Which Measure Would You Use to Know Whether Alpha Is

question 36

Multiple Choice

Which measure would you use to know whether alpha is truly significant or just the result of random chance?

• A) Jensen's alpha
• B) Information ratio
• C) Jensen-Treynor alpha
• D) Sharpe ratio
• E) Treynor ratio

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Definitions:

Test And Inspection

Processes aimed at ensuring that products or services meet the required quality standards before they reach the customer.

Quality Cost Report

A detailed report quantifying the total costs associated with preventing, detecting, and correcting defective work, including all aspects of quality control.

Prevention Cost

Expenses incurred to prevent defects in products or services, including quality training and product design improvements.

Quality Cost Report

A document that outlines the costs associated with preventing, detecting, and correcting product defects.