Which of the Following Is the Final Measure Used to Evaluate

question 50

Multiple Choice

Which of the following is the final measure used to evaluate a portfolio manager's performance using the Jensen approach?

• A)Alpha ONLY
• B)Alpha and the standard deviation
• C)Standard deviation
• D)None of the above

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Definitions:

Assets

Economic resources owned or controlled by an individual or entity that are expected to produce value.

Square Root Re-Expression

This term is the process of rewriting an expression or equation by taking the square root of its terms, often used in mathematical transformations.

Company's Assets

Resources owned by a company, regarded as having value and available to meet debts, commitments, or legacies.

Re-Expression

The process of transforming data through mathematical operations to make it meet certain assumptions or improve interpretability.