Which Is Not an Analytical Method Commonly Used to Improve

question 46

Multiple Choice

Which is not an analytical method commonly used to improve business decisions?

• A)Descriptive analytics.
• B)Predictive analytics.
• C)Prescriptive analytics.
• D)Reactive analytics.

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Definitions:

Sharpe Measure

The Sharpe Measure assesses the risk-adjusted return of an investment, comparing its excess return over the risk-free rate to its standard deviation of returns.

Standard Deviation

A measure of the dispersion or variability of a set of values, used in finance to gauge the risk associated with an investment's return.

Beta

An indicator of the degree of variability or systematic risk associated with a security or portfolio relative to the broader market.

Treynor Measure

A performance metric that measures the returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk.