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:

Norms

Shared expectations and rules that guide behavior within a group or society.

Organizational Structures

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the rules, roles, and responsibilities.

Crude Death Rate

The number of deaths each year per 1000 members of the population.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.