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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