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NEW QUESTION: 1
Which of the following expressions represents the Sharpe ratio, where is the expected return, is the standard deviation of returns, rm is the return of the market portfolio and if is the risk free rate:
A. Option B
B. https://www.riskprep.com/images/stories/questions/102.10.d.png
C. https://www.riskprep.com/images/stories/questions/102.10.b.png
C)
https://www.riskprep.com/images/stories/questions/102.10.a.png
D)
https://www.riskprep.com/images/stories/questions/102.10.c.png
D. Option D
E. Option C
F. Option A
Answer: F
Explanation:
Explanation
The Sharpe ratio is the ratio of the excess returns of a portfolio to its volatility. It provides an intuitive measure of a portfolio's excess return over the risk free rate. The Sharpe ratio is calculated as [(Portfolio return - Risk free return)/Portfolio standard deviation]. Therefore Choice 'c' is the correct answer.
The Treynor ratio is similar to the Sharpe ratio, but instead of using volatility in the denominator, it uses the portfolio's beta. Therefore the Treynor Ratio is calculated as [(Portfolio return - Risk free return)/Portfolio's beta].
Jensen's alpha is another risk adjusted performance measure. It considers only the 'alpha', or the return attributable to a portfolio manager's skill. It is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk free rate (rf), plus the market risk premium (which is given by [Beta x (Market portfolio's return - Risk free rate)]. Jensen's alpha is therefore the actual return earned less the risk free rate and the beta return.
Refer to the tutorial on risk adjusted performance measures for more details.

NEW QUESTION: 2
You are a remote sales person using the Microsoft Dynamics 365 app on your tablet to access your data. You are now in an area where you do not have Internet access. Which statement is true?
A. Records recently viewed have been stored on your tablet for offline access.
B. Records included in the synchronization filters have been stored on your tablet for offline access.
C. Records included in the Microsoft Dynamics 365 for Outlook offline filters have been stored on your tablet for offline access.
D. Records that you own have been stored on your tablet for offline access.
Answer: B

NEW QUESTION: 3

Answer:
Explanation:

Explanation