Which of the Following Measures of Portfolio Performance Is Not

question 32

Multiple Choice

Which of the following measures of portfolio performance is not based on the Capital Asset Pricing Model?

• A) the reward-to-volatility ratio
• B) the ex-post alpha
• C) the linear regression
• D) the Sharpe ratio

---

Definitions:

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.

Sample Variance

A measure of the dispersion or spread of data points in a sample, calculated by taking the average of the squared differences from the mean.

Central Limit Theorem

A statistical theory stating that the distribution of sample means will approximate a normal distribution as the sample size becomes large, regardless of the population's distribution.

Statistical Analyses

The process of collecting, summarizing, and interpreting data to discover patterns and test hypotheses.