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:

Work Days

Days on which business is conducted, typically excluding weekends and public holidays.

Wage Rise

An increase in the rate of pay employees receive for their work, often as a result of negotiation, economic conditions, or to match inflation rates.

Compensated Absences

A provision for employees’ paid time off, including leave for vacations, illnesses, and personal reasons.

Short-Term

Refers to a time horizon or a period within twelve months or within an entity's operating cycle if it's longer.