Sharpe's Measure of Portfolio Performance Adjusts for Risk by Dividing

question 58

True/False

Sharpe's measure of portfolio performance adjusts for risk by dividing total portfolio return by the portfolio beta.

---

Definitions:

Behavior Modification

A formal technique for promoting the frequency of desirable behaviors and decreasing the incidence of unwanted ones.

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased, often through rewards or consequences.

Cognitive Development

The process by which individuals acquire and understand knowledge through thought, experience, and the senses, encompassing learning, memory, problem-solving, and decision-making.

Assimilation

A cognitive process where individuals integrate new information into their existing knowledge base or framework.