Morningstar's RAR MethodI) Is One of the Most Widely-Used Performance

question 28

Multiple Choice

Morningstar's RAR methodI) is one of the most widely-used performance measures.II) indicates poor performance by placing up to 5 darts next to the fund's name.III) computes fund returns adjusted for loads.IV) computes fund returns adjusted for risk.V) produces ranking results that are the same as those produced with the Sharpe measure.

• A) I, II, and IV
• B) I, III, and IV
• C) I, IV, and V
• D) I, II, IV, and V
• E) I, II, III, IV, and V

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Definitions:

Sequential Search

An algorithm that searches for a target value within a list by examining each element from the beginning to the end until the target is found.

Minimum Number

The smallest value in a set of numbers or the outcome of an operation that finds this value.

Comparisons

Operations in programming that evaluate the relationship between two values or expressions, such as equality, inequality, or relational operations.

Sequential Search

A simple search algorithm that checks each element in a list one by one until the desired element is found or the list ends.