When comparing investments that have different means, the measures the relative riskiness of each investment and is a better indicator of risk than the standard deviation.

An investment requires a total return that comprises: O a real rate of return and compensation for inflation. a real rate of return, compensation for inflation, and a risk premium. compensation for inflation and a risk premium. a real rate of return, compensation for inflation, a risk premium, and compensation for time and effort devoted to researching alternative investments. None of the above

What does Jensen's alpha measure? a. An investor's reward in proportion to their assumption of systematic risk b. The abnormal return of an asset, defined as the degree to which its actual return exceeds that predicted by the capital asset pricing model c. The degree to which diversifiable risk is eliminated d. How much reward an investor is getting for each unit of risk assumed

According to modern portfolio theory, pair-wise covariance is more important to total portfolio risk than individual security variance. True or False

How is CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha used to Evaluate asset returns?

An investment with a high return is likely to be high riskA. TrueB. False

2. How would you describe the correlation between risk and return in investments, and what are the various types of income that investors consider from their standpoint?

Which are the different assets that have the potential to be combined efficiently in a portfolio that will provide an optimal risk-return relationship for investors?

The standard deviation of a portfolio is simply the weighted average of the standard deviations for the individual assets within the portfolio.  Group of answer choices True False