Which of the Following Performance Metrics Measures Reward-To-Risk

question 9

Multiple Choice

Which of the following performance metrics measures reward-to-risk?
I. Treynor ratio
II. Sharpe ratio
III. Jensen's alpha

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

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Definitions:

Total Current Assets

The aggregate amount of all assets expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business.

Assets Due

Typically refers to amounts or assets scheduled for receipt or payment within a predefined period; however, "Due" often relates to liabilities (e.g., accounts payable). NO precise term called "Assets Due" in standard financial terminology without further context.

90-Day Note

A short-term debt instrument that matures in 90 days, typically used for financing immediate needs.

360-Day Year

The 360-day year is used in financial calculations to simplify interest calculations, assuming each month has 30 days.