Which of the following is TRUE? You should choose a stock with the greater Jensen’s alpha Lower Treynor ratio indicates better risk adjusted performance Lower Sharpe ratio indicates greater level of risk for the same level of risk-adjusted return Higher Sharpe ratio indicates lower return for the same level of risk
Which of the following is TRUE? You should choose a stock with the greater Jensen’s alpha Lower Treynor ratio indicates better risk adjusted performance Lower Sharpe ratio indicates greater level of risk for the same level of risk-adjusted return Higher Sharpe ratio indicates lower return for the same level of risk
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter25: Portfolio Theory And Asset Pricing Models
Section: Chapter Questions
Problem 9MC
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Question
Which of the following is TRUE?
You should choose a stock with the greater Jensen’s alpha |
||
Lower Treynor ratio indicates better risk adjusted performance |
||
Lower Sharpe ratio indicates greater level of risk for the same level of risk-adjusted return |
||
Higher Sharpe ratio indicates lower return for the same level of risk |
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