Treynor Developed the First Composite Measure of Portfolio Performance by Introducing

question 43

True/False

Treynor developed the first composite measure of portfolio performance by introducing the capital market line, which defines the relationship between the return of a portfolio over time and the return for the market portfolio.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and buildings, that are utilized to start or maintain a business.

Assets

Economic resources owned or controlled by a business or individual, capable of producing value and categorized as either current or non-current.

Experience

The knowledge or skill acquired by a person through involvement in or exposure to events, situations, or activities.

Business Opportunities

Circumstances or situations that can be leveraged by entrepreneurs or companies to achieve financial growth or competitive advantage.