The Measure of Performance Defined as the Difference Between a Fund's

question 19

Multiple Choice

The measure of performance defined as the difference between a fund's excess return and a point on the market line corresponding to the fund's beta is called

• A)Alpha
• B)Average differential return
• C)The Jensen measure
• D)More than one of the above

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Definitions:

Human Capital

The stock of skills, knowledge, and social and personality attributes embodied in the ability to perform labor so as to produce economic value.

Rewarding Opportunities

Prospects or situations that promise or provide satisfaction, benefits, or advantageous outcomes.

Not-invented-here Syndrome

A mindset or culture within an organization that undervalues or dismisses ideas or products because they were not developed internally.

Insider Knowledge Valuation

The process of recognizing and valuing the unique, internal knowledge possessed by members within an organization or community.