INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 15

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-You can learn about the financial strength of an insurance company by checking Best's Insurance Reports and [the SEC | Standard and Poor's] rating system.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and amount of cash flows into and out of the investment.

Time-Weighted Return

A measure of the historical performance of an investment portfolio which adjusts for external flows, such as cash injections or withdrawals.

Sharpe Measure

A metric used to assess the performance of an investment by adjusting for its risk, calculated as the difference between the investment's returns and the risk-free return rate, divided by the investment's standard deviation.

Beta

An index for assessing the variation or inherent risk of a security or a portfolio as compared to the aggregate market.