The Portfolio Performance Measure That Can Be Most Affected by a Benchmark

question 64

True/False

The portfolio performance measure that can be most affected by a benchmark error is the Sharpe measure.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders, and having the ability to own property, enter contracts, and sue or be sued.

Taxable Income

Earnings subject to taxation, which equals gross income minus any allowable deductions and exemptions.

Non-Dividend Paying Corporation

A corporation that chooses not to distribute any part of its earnings to shareholders as dividends, typically to reinvest in the business.