Jensen's Alpha Measures a Security's Raw Return Against the

question 94

Multiple Choice

Jensen's alpha measures a security's raw return against the

• A) Sharpe-adjusted return
• B) Market return
• C) CAPM return
• D) Real return
• E) Treynor-adjusted return

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Definitions:

Budgetary Slack

The practice of underestimating revenue or overestimating expenses to make budget targets more easily attainable.

Window Dress

Window Dressing is a financial strategy used by companies to improve the appearance of their financial statements or investment portfolio, often at the end of an accounting period.

Sales Staff

Employees responsible for the sale of products or services, pivotal in achieving business revenue targets and maintaining customer relationships.

Budgeted Sales

Projected sales revenue a company plans to achieve in a certain period, often used for planning purposes.