Which One of the Following Statements Is Correct If a Portfolio

question 75

Multiple Choice

Which one of the following statements is correct if a portfolio has a Jensen measure of return of zero?

• A) The portfolio has a total return of zero percent.
• B) The portfolio earned exactly its expected return on a risk-adjusted basis.
• C) The portfolio outperformed the market on a risk-adjusted basis.
• D) The market provides a better return on a risk-adjusted basis.

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Definitions:

Slip-Joint Pliers

A type of adjustable pliers with a sliding pivot point, allowing the jaws to open wider for gripping larger objects.

Box-End Wrench

A type of wrench or spanner that is completely closed on one end, designed to grip the sides of a bolt or nut, providing a secure fit for more torque.

Torque

A measure of the force that can cause an object to rotate about an axis, generally reported in newton meters (Nm) or foot-pounds (ft-lb).

IFI Nut

A standardized nut type specified by the Industrial Fasteners Institute, used across various applications.