A Disadvantage of the Treynor and Sharpe Measures Is That

question 82

Multiple Choice

A disadvantage of the Treynor and Sharpe measures is that

• A) they produce absolute performance rankings.
• B) the beta and standard deviation are static.
• C) they are both difficult to compute.
• D) they produce relative performance rankings.
• E) they give very different measurements for well-diversified portfolios.

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Definitions:

Political Decision Making

The process by which public policies are formulated and decided upon by individuals and groups within governmental systems.

Free-Rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for the cost of the benefit, leading to underprovision of those goods or services.

Local Government

A form of public administration which, in a majority of contexts, exists as the lowest tier of administration within a given state.

Funds

Resources in the form of money available for transactions or investments.