The Critical Variable in the Determination of the Success of the Active

question 24

Multiple Choice

The critical variable in the determination of the success of the active portfolio is the share's ________.

• A)alpha/non-systematic risk
• B)alpha/systematic risk
• C)delta/non-systematic risk
• D)delta/systematic risk

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Definitions:

Z Distribution

A normal distribution with a mean of zero and a standard deviation of one, also known as a standard normal distribution.

95th Percentile

A value below which 95% of the data points in a data set fall.

Mean

The arithmetic average of a set of values or quantities, calculated by dividing the total of all values by the number of values.

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparison with other normal distributions.