For a Poorly Diversified Portfolio the Appropriate Measure of Portfolio

question 91

Multiple Choice

For a poorly diversified portfolio the appropriate measure of portfolio performance would be

• A) the Treynor measure because it evaluates portfolio performance on the basis of return and diversification.
• B) the Sharpe measure because it evaluates portfolio performance on the basis of return and diversification.
• C) the Treynor measure because it uses standard deviation as the risk measure.
• D) the Sharpe measure because it uses beta as the risk measure.
• E) the Jensen measure because it measures the risk-adjusted performance.

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Definitions:

Sense of Taste

One of the five senses, involving the ability to detect flavors through taste buds in the mouth.

Spoiled Food

Food that has gone bad due to bacteria, mold, or yeast growth, making it unsafe to eat and potentially causing illness.

Saliva

A watery secretion in the mouth from the salivary glands, important for digestion and oral hygiene.

Swallow Efficiently

The ability to manage and control the swallowing process effectively, minimizing effort and risk of aspiration.