The Treynor-Black Model

question 40

Multiple Choice

The Treynor-Black model

• A) considers both macroeconomic and microeconomic risks.
• B) considers security selection only.
• C) is nearly impossible to implement.
• D) considers both macroeconomic and microeconomic risks and is nearly impossible to implement.
• E) considers security selection only and is nearly impossible to implement.

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Definitions:

Central Tendency

Statistical measures that describe the center or typical value of a dataset, including mean, median, and mode.

Expected Value

The weighted average of all possible outcomes of a random variable, with weights being their respective probabilities of occurrence.

Weighted Average

A calculation that takes into account the different weights or importance of some elements in a data set, providing a mean value that reflects these weights.

Standard Deviation

A numerical indicator that calculates the degree of spread or deviation of data points from their average.