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

---

Definitions:

Radical Individual

An individual who prioritizes personal freedom and independence, often advocating for significant social, political, or economic changes.

Expressing Public Opinion

The act of citizens sharing their views and perspectives on various issues, often influencing public policy and decision-making processes.

Constitutional Democracy

A form of government characterized by the rule of law, separation of powers, protected freedoms, and the participation of the citizenry in the political process.

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, advocating preventive action in the face of uncertainty.