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Which of the following measures the total risk of a portfolio?
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- Is the portfolio risk the weighted average of the variance or covariance?The appropriate measure of risk used in Sharpe's measure of portfolio evaluation is a. Range b. Variance c. Beta d. Standard deviationBeta is which of the following: A) standard deviation. B) total risk. C) Beta is the relationship which is between an investment's return, and the market return. D) unsystematic risk.
- Which of the following measures reflects the excess return earned on a portfolio per unit of its systematic risk a. Treynor’s measure b. Sharpe’s measure c. Jensen’s measure d. Total measure3. What is the relationship of a portfolio standard deviation to the weighted average of the standard deviations of the component assets?The beta of an investment measures the probability weighted expected rate of return of a portfolio. True False
- It is a risk adjusted performance measure that represents the average return on a portfolio. a. sharpe ratio b. Treynor indexHow are the following used on a stand-alone and a portfolio basis? 1. Standard Deviation 2. Variance 3. CovarianceThe expected return of a portfolio is simply the weighted average of the expected returns for the individual assets within the portfolio. Group of answer choices True False
- Total risk can be divided into: standard deviation and variance. standard deviation and covariance. portfolio risk and beta. systematic risk and unsystematic risk. portfolio risk and covariance.Provide a descriptive formula for each of the following (e.g., Total risk =?+?): a. Total risk= b. Discount rate= c. Adjusted NPV=What are the Sharpe ratio, Treynor ratio, and Jensen’s alpha for each portfolio?