Which Measure of Portfolio Performance Allows Analysts to Determine the Statistical

question 19

Multiple Choice

Which measure of portfolio performance allows analysts to determine the statistical significance of abnormal returns?

• A) Sharpe measure
• B) Jensen measure
• C) Fama measure
• D) Alternative components model (MCV)
• E) Treynor measure

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Definitions:

Emphasis on Collections

A focus or prioritization on the process of obtaining payments from customers or clients for goods or services provided.

Return on Sales Ratio

A financial metric that measures the portion of a company's revenue that is converted into profit.

Net Income Before Taxes

The profit a company generates after all expenses have been deducted from revenues but before income taxes are subtracted.

Liquidity

The ability of an asset to be converted into cash quickly without losing value.