Which of the Following Performance Measures Is the Least Useful

question 27

Multiple Choice

Which of the following performance measures is the least useful measure of performance?

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

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Definitions:

Extreme Values

The smallest or largest values in a data set, often used in analyzing data trends or outliers.

Negatively Skewed

Describes a distribution of numerical data where the left tail is longer or fatter than the right, showing that the majority of values are concentrated on the right side of the distribution.

Positively Skewed

A type of distribution in which the right tail is longer, illustrating that a dataset has a large number of higher value outliers.

Histogram

A graphical representation of the distribution of numerical data, showing the frequency of data within specified intervals.