Information Ratio Portfolio Performance Measures

question 83

Multiple Choice

Information ratio 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) None of the above.

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Definitions:

Metabolic Syndrome

A cluster of conditions including increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol levels, which together increase the risk of heart disease, stroke, and diabetes.

Lipid Levels

The concentrations of fats or fat-like substances in the blood, such as cholesterol and triglycerides, important for assessing cardiovascular risk.

Insulin Resistance

A condition in which the body's cells become less responsive to insulin, leading to higher blood sugar levels and often associated with type 2 diabetes.

Inflammatory Response

The body's defensive reaction to injury or infection, involving increased blood flow, white blood cell activation, and release of substances to combat pathogens.