The Sharpe Measure of Portfolio Performance Divides the Portfolio's Risk

question 45

True/False

The Sharpe measure of portfolio performance divides the portfolio's risk premium by the portfolio's beta.

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Definitions:

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus following an unwelcome behavior with the intention of decreasing that behavior's frequency.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Positive Reinforcement

The addition of a rewarding stimulus following a behavior, intended to increase the likelihood of that behavior reoccurring.

Behaviorism

A branch of psychology that focuses on (relatively) simple explanations for outward behavior and is unconcerned with the inner workings of the mind.