After Extensive Research,an Analyst Asserts That There Is an 80

question 67

Multiple Choice

After extensive research,an analyst asserts that there is an 80% chance that ABC Corporation will beat its EPS forecast.Analogously,the odds for the company beating its EPS forecast are _______.

• A)1 in 4
• B)1 in 1.25
• C)4 to 1
• D)1.25 to 1

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Definitions:

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment portfolio, by comparing its excess returns to the volatility of those returns.

Active Portfolio Managers

Investment professionals who make regular buy, hold, and sell decisions in an attempt to outperform standard benchmarks.

Active Portfolio

An investment portfolio actively managed by a portfolio manager or investor aiming to outperform a benchmark index through regular buying and selling of securities.

Systematic Risk

This refers to the inherent risk that affects the entire financial market or a whole market segment, unpreventable through diversification.