Under Jensen's Differential Return Approach to Portfolio Evaluation,superior Market Timing

question 49

Multiple Choice

Under Jensen's differential return approach to portfolio evaluation,superior market timing is exhibited by a

• A)statistically significant positive alpha.
• B)statistically significant negative alpha.
• C)zero alpha.
• D)low positive alpha.

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Definitions:

Relative Efficiency

A measure comparing the precision of different estimators or statistical procedures under the same conditions.

Line-Angle Formula

A representation of molecular structure using lines for bonds between carbon atoms and angles to indicate changes in direction, omitting most hydrogen atoms.

Compounds

Substances formed from two or more elements that are chemically combined in fixed ratios.

Molecular Formula

A notation representing the number and type of atoms in a molecule without indicating how the atoms are bonded.