The Performance Metric That Measures How Much a Portfolio "Beat

question 28

Multiple Choice

The performance metric that measures how much a portfolio "beat the market" is:

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

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Definitions:

Cash Flow Statement

A statement that shows the cash on hand at the beginning of a period, the income and disbursements made during the period, and the new amount of cash on hand at the end of the period.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Dollar Value

Dollar value is the worth of an item or service expressed in terms of money.

Geographic Area

A specific physical location defined by natural or artificial boundaries.