Which Is the Better Measure to Estimate the Performance of a Well-Diversified

question 27

Multiple Choice

Which is the better measure to estimate the performance of a well-diversified portfolio in relation to the market index?

• A)Sharpe's RVAR
• B)Treynor's RVOL
• C)Total return (alone)
• D)Portfolio beta (alone)

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Definitions:

Leaking Pipeline

A metaphor describing the continuous loss of individuals from a certain path or process, especially used to discuss the decrease in representation of minority groups in a progression, such as women in STEM fields.

Double Bind

A psychological predicament in which an individual receives two or more conflicting messages, wherein responding to one negates the ability to respond to the other(s).

Multiculturalism

Refers to pluralism and respect for diversity in the workplace.

Inclusivity

The practice or policy of including people who might otherwise be excluded or marginalized, such as those who have disabilities, come from different cultural backgrounds, or hold different views.