Consider the Sharpe and Treynor Performance Measures

question 20

Multiple Choice

Consider the Sharpe and Treynor performance measures.When a pension fund is large
And has many managers,the __________ measure is better for evaluating individual managers while the __________ measure is better for evaluating the manager of a small fund with only one manager responsible for all investments.

• A)Sharpe,Sharpe
• B)Sharpe,Treynor
• C)Treynor,Sharpe
• D)Treynor,Treynor

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Definitions:

Political Considerations

Factors or influences from the political environment that affect decision-making processes in organizations or governments.

Environmental Regulations

Laws and policies aimed at protecting the environment by controlling pollution levels, waste management, and conservation efforts, impacting business operations and compliance costs.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Absorption Costs

Absorption Costs involve all the costs associated with manufacturing a product, including direct labor, materials, and overhead, allocated to the product.