Which One of the Following Is Computed by Dividing a Portfolio's

question 40

Multiple Choice

Which one of the following is computed by dividing a portfolio's risk premium by the portfolio beta?

• A)raw return
• B)Value-at-Risk
• C)Jensen's alpha
• D)Sharpe ratio
• E)Treynor ratio

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating the company's profitability.

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period, including operating and non-operating expenses.

Total Revenues

The complete amount of income generated by a business through its activities, before any costs or expenses are deducted.

Private Accountants

Accountants employed by a single company to handle its financial records, analysis, and reporting.