Which Metric Measures How Volatile a Fund's Returns Are Relative

question 95

Multiple Choice

Which metric measures how volatile a fund's returns are relative to its benchmark?

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

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Definitions:

Punishing Stimuli

Any stimulus that decreases the likelihood of the behavior that it follows, often used in the context of behavioral psychology and conditioning.

Aggressiveness

A behavior characterized by boldness or assertiveness, with a tendency to confront or attack.

Operant Conditioning

A method in which learning occurs by altering the level of a behavior through the application of reinforcers or punishments.

Immediate Reinforcement

The instant reward or punishment following a behavior, influencing the likelihood of that behavior's occurrence in the future.