Which One of the Following Is Computed by Dividing a Portfolio's

question 44

Multiple Choice

Which one of the following is computed by dividing a portfolio's risk premium by the portfolio beta?

• A) The Treynor ratio
• B) The raw return
• C) Jensen's alpha
• D) The Sharpe ratio
• E) The Jensen-Treynor alpha

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Definitions:

Reading Scores

Scores that quantify the ability or proficiency of an individual in reading; often used in educational settings.

Correlation

A measure that indicates the extent to which two or more variables fluctuate together, revealing whether and how strongly pairs of variables are related.

Inches

A unit of length in the imperial and United States customary systems, equivalent to 1/12 of a foot.

Centimeters

A unit of length in the metric system, equal to one hundredth of a meter.