The __________ Calculates the Reward to Risk Trade-Off by Dividing

question 49

Multiple Choice

The __________ calculates the reward to risk trade-off by dividing the average portfolio excess return by the portfolio beta.

• A) Sharpe measure
• B) Treynor measure
• C) Jensen measure
• D) appraisal ratio

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Definitions:

Cash Distribution

The payment of earnings or capital to shareholders, partners, or owners in the form of cash.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in two columns, debit and credit, ensuring that the total debits equal total credits.

Ledger

A compilation or record of financial transactions kept in a book or collection of accounts.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.