Which of the Following Statements About Jensen's Measure Are Correct

question 63

Multiple Choice

Which of the following statements about Jensen's measure are correct?
I. Through its use of the capital asset pricing model, Jensen's measure automatically adjusts for market return.
II. In general, the higher the Jensen's measure, the better a portfolio has performed.
III. Jensen's measure is referred to as alpha.
IV. A positive Jensen's measure indicates an investment has underperformed the market on a risk-adjusted basis.

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

---

Definitions:

Community Helpers

Individuals who provide essential services and support within a community, such as firefighters, police officers, and healthcare workers.

Cycle of Empowerment

A process that describes stages of gaining strength, awareness, and control over one's life, often used in personal development and community building.

Community Workers

Individuals who work at the grassroots level to promote, enhance, and assist in the betterment of communities, focusing on social issues and community development.

Learning, Utilization

The process of acquiring knowledge or skills and applying them effectively in relevant situations.