The Measures of Portfolio Performance That Involve Beta, the Ex-Post

question 31

Multiple Choice

The measures of portfolio performance that involve beta, the ex-post alpha, and reward-to-volatility measures have been criticized because the rely heavily on the

• A) CAPM
• B) arbitrage pricing theory
• C) risk free rate
• D) market beta

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing organisms to focus on changes in their environment.

Fire Alarm

A device designed to detect fire or smoke and emit a loud warning sound to alert occupants of potential danger.

Cold Temperature

Refers to lower temperatures that can be naturally occurring or artificially created, often perceived as uncomfortable or requiring physiological adaptation by organisms.

Sensory Adaptation

The process by which sensory receptors become less sensitive over time when exposed to constant stimuli.