In an Efficient Market, Which of the Following Will Be

question 12

Multiple Choice

In an efficient market, which of the following will be the same for every asset?
I. Treynor ratio
II. Sharpe ratio
III. Jensen's alpha

• A) II only
• B) I and III only
• C) II and III only
• D) I only
• E) I, II, and III

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Definitions:

Ingratiation

A social influence tactic involving deliberate efforts to win someone's favor or approval, often through flattery or other forms of manipulation.

Supplication

A strategy in which an individual presents themselves as weak or in need of help to elicit care and support from others.

Self-promotion

The act of highlighting one's own skills, achievements, or virtues, often to improve one's social standing or gain advantages.

Stable Self-esteem

A condition where an individual's confidence in their worth or abilities remains constant, despite external circumstances.