The Median of a Set of Data Is More Representative

question 151

True/False

The median of a set of data is more representative than the mean when the mean is larger than most of the observations.

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Definitions:

Jensen's Measure

A performance evaluation tool that measures the excess return of a portfolio above the expected return, accounting for risk.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government securities like Treasury bills.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than market volatility.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for the risk taken, considering systematic risk.