For a Poorly Diversified Portfolio the Appropriate Measure of Portfolio

question 11

Multiple Choice

For a poorly diversified portfolio the appropriate measure of portfolio performance would be

• A) the Treynor measure because it evaluates portfolio performance on the basis of return and diversification.
• B) the Sharpe measure because it evaluates portfolio performance on the basis of return and diversification.
• C) the Treynor measure because it uses standard deviation as the risk measure.
• D) the Sharpe measure because it uses beta as the risk measure.
• E) none of the above.

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Definitions:

Ecdysozoans

A major group of invertebrate animals including arthropods and nematodes, defined by their shared trait of molting an exoskeleton (ecdysis).

Unique Adaptation

A distinctive or specialized feature, structure, or behavior developed by an organism to improve its chances of survival and reproduction in its environment.

Insects

A class of arthropods, characterized by a three-part body (head, thorax, abdomen), three pairs of legs, compound eyes, and two antennae.

Arthropod

An invertebrate that belongs to phylum Arthropoda; characterized by a hard exoskeleton; a segmented body; and paired, jointed appendages.