Which statement regarding a portfolio is CORRECT? Multiple Choice Sharpe, Treynor, and Jensen are all using reward to risk ratio to measure the performance. O Alpha is a more accurate performance indicator than the information ratio. O Investors are always looking to find portfolios with negative alphas, since they are undervalued. O Sharpe ratio is using systematic risk for the performance measurement.
Which statement regarding a portfolio is CORRECT? Multiple Choice Sharpe, Treynor, and Jensen are all using reward to risk ratio to measure the performance. O Alpha is a more accurate performance indicator than the information ratio. O Investors are always looking to find portfolios with negative alphas, since they are undervalued. O Sharpe ratio is using systematic risk for the performance measurement.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which statement regarding a portfolio is CORRECT?
Multiple Choice
Sharpe, Treynor, and Jensen are all using reward to risk ratio to measure the performance.
O Alpha is a more accurate performance indicator than the information ratio.
Investors are always looking to find portfolios with negative alphas, since they are undervalued.
O Sharpe ratio is using systematic risk for the performance measurement.
Transcribed Image Text:As the information ratio is getting closer to zero, alpha is becoming less reliable.
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