In the Characteristic Selectivity (CS) Performance Measure

question 3

Multiple Choice

In the Characteristic Selectivity (CS) performance measure,

• A) portfolio performance is measured by assessing the quality of services provided by money managers by looking at adjustments made to the content of their portfolios.
• B) portfolio performance is measured by examining both unsystematic and systematic risk.
• C) portfolio performance is measured by comparing the returns of each stock in the portfolio to the return of a benchmark portfolio. With the same aggregate investment characteristics as the security in question.
• D) portfolio performance is measured on the basis of return per unit of risk.
• E) portfolio performance is measured on the basis of historic average differential return per unit of historic variability of differential return.

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Definitions:

Hull-Spence Model

A theory of learning that integrates drive reduction and incentive motivation, proposing that a combination of stimuli and past reinforcements can predict behavior.

Generalization Gradients

In learning theory, the range and degree to which a learned response is produced to stimuli that vary from the original conditioned stimulus.

Discrimination Training

The process in behavioral psychology of training an organism to respond differently to distinct stimuli, enhancing its ability to distinguish between them.

Inhibitory Generalization

The process by which an organism learns to inhibit responses to stimuli that are similar to a conditioned stimulus that signals an aversive event.