When __________ of an Asset Is Better Than the Comparable

question 48

Multiple Choice

When __________ of an asset is better than the comparable market measure, ___________ is also better than the market.

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

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Definitions:

Waxed Floss

Dental floss coated with wax to facilitate easier sliding between teeth for the removal of plaque and food particles.

Head Lice

Parasitic insects that live on the human scalp and feed on blood, causing itching and discomfort; commonly spread by close personal contact.

Pediculosis Capitis

A common infestation of the scalp by head lice, leading to itching and discomfort.

Lindane

A chemical insecticide used in prescription medications to treat lice and scabies, though its use is controversial due to potential toxicity.