Under Jensen's Differential Return Approach to Portfolio Evaluation,superior Market Timing

question 49

Multiple Choice

Under Jensen's differential return approach to portfolio evaluation,superior market timing is exhibited by a

• A)statistically significant positive alpha.
• B)statistically significant negative alpha.
• C)zero alpha.
• D)low positive alpha.

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Definitions:

Informational Influence

The effect on an individual's behavior or opinions due to the desire to be correct, often resulting from the acceptance of information from others as evidence about reality.

Injunctive Norms

Societal rules and guidelines that dictate what behaviors are perceived as approved or disapproved by a social group.

Descriptive Norm

The perception of what is commonly done or typical behavior within a specific context or group.

Injunctive Norm

Social norms that concern people's perceptions of what behaviors are approved or disapproved of by others.