Relative Return Portfolio Performance Measures

question 101

Multiple Choice

Relative return portfolio performance measures

• A) adjust portfolio risk to match benchmark risk.
• B) compare portfolio returns to expected returns under CAPM.
• C) evaluate portfolio performance on the basis of return per unit of risk.
• D) indicate historic average differential return per unit of historic variability of differential return.
• E) the average market beta per unit of risk.

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Definitions:

Percent Body Fat

The proportion of a person's mass that is made up of fat, compared to lean mass, often used as an indicator of fitness.

Fat

A natural oily or greasy substance occurring in animal bodies and certain plants, essential for energy storage and cell function.

Body Mass Index (BMI)

A numerical computation of a person's weight in relation to height, used to assess whether they fall within a healthy weight range.

Classification

The systematic arrangement in groups or categories according to established criteria.