Sharpe's Measure of Portfolio Performance Compares the Risk Premium on a Portfolio

question 104

Multiple Choice

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to

• A) a broad-based market index such as the S&P 500 index.
• B) the portfolio's standard deviation of return.
• C) the portfolio's beta.
• D) the prevailing risk-free rate of return.

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Definitions:

Quarterly Performance

The assessment of an organization's, team's, or individual's work results and achievements over a three-month period.

Merit Pay

Awards pay increases in proportion to performance contributions.

Performance Appraisal System

A performance appraisal system is a structured process through which employees' job performance is regularly evaluated, providing feedback, identifying areas for improvement, and determining development needs.

Totality Quality Management

A management approach centered on quality, based on the participation of all members of an organization and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society.