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The Sharpe and Treynor Measures Complement Each Other and Thus

question 107

True/False

The Sharpe and Treynor measures complement each other and thus both should be used to measure portfolio performance.


Definitions:

Indorses

Refers typically to the act of signing the back of a financial instrument, such as a check, thereby transferring rights to another party.

Negotiates

The process of discussing something formally in order to reach an agreement, usually in the context of contracts, salaries, or prices.

Parol Evidence

A legal rule that prevents parties to a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary the written terms.

Code

A set of rules or principles designed to regulate conduct or provide guidelines for behavior.

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