Which Metric Measures How Volatile a Fund's Returns Are Relative

question 95

Multiple Choice

Which metric measures how volatile a fund's returns are relative to its benchmark?

• A) Jensen's alpha
• B) Information ratio
• C) Tracking error
• D) Sharpe ratio
• E) Treynor ratio

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Definitions:

Hypodermis

The deepest layer of the skin, consisting of fat and connective tissues that insulate the body and protect underlying muscles and other structures.

Dermal Papilla

A small, nipple-like extension of the dermis into the hair follicle, containing capillaries that nourish the hair.

Spinothalamic Tracts

Neural pathways in the spinal cord that transmit pain and temperature sensations to the brain.

Dorsal Column Tracts

Sensory pathways in the spinal cord that convey touch, vibration, and proprioceptive information to the brain.