The Comparison of ________ Performance to ________ Performance,this Is Known

question 56

Multiple Choice

The comparison of ________ performance to ________ performance,this is known as the control or postdecision role of information.

• A)low;high
• B)actual;budgeted
• C)real;superficial
• D)known;unknown
• E)new;existing

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Definitions:

Sharpe Measure

A ratio used to evaluate the risk-adjusted performance of an investment, considering both the return and the volatility of the investment.

Risk-Free Return

The theoretical return on investment with no risk of financial loss, typically associated with government bonds.

Standard Deviations

A statistical measure that quantifies the dispersion or spread of a set of data points relative to its mean, often used in the context of investment returns to measure volatility.

Geometric Average Return

An average rate of return on an investment that compounds over time, calculated by taking the nth root of the total products of returns.