The __________ Calculates the Reward to Risk Trade-Off by Dividing

question 49

Multiple Choice

The __________ calculates the reward to risk trade-off by dividing the average portfolio excess return by the portfolio beta.

• A) Sharpe measure
• B) Treynor measure
• C) Jensen measure
• D) appraisal ratio

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Definitions:

Legal Terminology

The specialized language used that relates to laws or the legal process, including terms of art, phrases, and concepts.

Sufficiency of Consideration

The legal principle that the value exchanged in a contract must be both legally sufficient and something of value, in order for the contract to be enforceable.

Full Settlement

An agreement or payment that completely resolves a claim, debt, or dispute, leaving no further obligations for any of the involved parties.

Additional Consideration

Extra compensation or benefit that is promised to be given in a contract, in addition to what was originally agreed.