Which Portfolio Measurement Uses the Mean Excess Return in the Numerator

question 105

Multiple Choice

Which portfolio measurement uses the mean excess return in the numerator divided by the amount of residual risk that the investor incurred in pursuit of those excess returns?

• A) Jensen measure
• B) Fama measure
• C) Sharpe measure
• D) Treynor ratio
• E) Information ratio

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Definitions:

Cluster B

A category within the Diagnostic and Statistical Manual of Mental Disorders that includes personality disorders characterized by dramatic, overly emotional, or unpredictable thinking or behavior.

Personality Disorders

Mental health disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Borderline

Often referring to Borderline Personality Disorder, a mental health condition characterized by unstable moods, behaviors, and relationships.

Paranoid

Pertaining to a state characterized by persistent delusions of persecution or grandeur, often without sufficient basis, typically seen in paranoid schizophrenia or paranoid personality disorder.