Question: The _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ is an appropriate measure of excess return

The _________________ is an appropriate measure of excess return to risk for an undiversified portfolio.
Question 12 options:
1)
Treynor ratio
2)
Net profit margin
3)
Sharpe ratio
4)
None of the options listed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

need help on all thanks thx 1. Project risk versus portfolio risk Consider a firm to be a portfolio of several projects. The contribution of a project's risk to the firm's risk will be referred to as...

Q:

7. The purpose of this question is to familiarise you with the use of regression analysis to calculate the parameters of the market model and to interpret these parameter estimates and selected...

Q:

Question 19: Which of the following statements is false? A It is common practice to estimate beta based on the historical correlation and volatilities B. Beta measures the diversifiable risk of a...

Q:

Which of the following statements is FALSE? estion 5 yet wered ked out of Select one: a. Franco Modigliani and Merton Miller argued that with perfect capital markets, the total value of a firm should...

Q:

Which of the following statements is FALSE? Select one: A. Beta is the expected percent change in the excess return of the security for a 1% change in the excess return of the market portfolio. B....

Q:

Which of the following statements is FALSE? A) Beta represents the amount by which risks that affect the overall market are amplified for a given stock or investment. B) Beta is the expected percent...

Q:

1. Project risk versus portfolio risk Consider a firm to be a portfolio of several projects. The contribution of a project's risk to the firm's risk will be referred to as the beta risk of a project....

Q:

1. Project risk versus portfolio risk Consider a firm to be a portfolio of several projects. The contribution of a project's risk to the firm's risk will be referred to as the beta risk of a project....

Q:

QUESTION 3 does the CAPM predict about the expected return on such an asset? Can you give an explanation for your answer? a . the risk - free rate. A negative beta asset would carry a negative risk...

Q:

You are a manager of an investment fund. Your job is to advise clients on what portfolio best suits their needs, given their characteristics. You have three different customer types: I. II. A young...

Q:

The volume of cone of radius r and height his (a) (b) oil (c) water -7h. 20 cm The diagram above shows a container, in the form of a right circular cone. It is partially filled with water to a...

Q:

Part 1: AHm dissolution Mass of Water Mass of NaOH Total Mass in cup Mole of NaOH Initial Temperature 21.0C Final Temperature 29.4C Change in Temperature 8.4C (calculated) AHm dissolution Average AHm...

Q:

The cost of debt outstanding or the historical cost of debt is the appropriate component cost of debt that should be used in the firm's investments decisions. True False Clear selection

Q:

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...