Which of the Following Should Generally Only Be Used to Evaluate

question 27

Multiple Choice

Which of the following should generally only be used to evaluate relatively diversified portfolios rather than individual securities?
I. Sharpe ratio
II. Treynor ratio
III. Jensen's alpha

• A)I only
• B)II only
• C)III only
• D)I and II only
• E)I, II, and III

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Definitions:

Health

A state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.

Longevity

The duration of an individual's life or existence, often referenced in studies concerning aging and lifespan extension.

Ethnic Differences

Variations in behaviors, customs, norms, and values among individuals from different ethnic backgrounds.

IQ

A score derived from standardized tests designed to measure human intelligence and cognitive abilities.