Multiple Choice
The term excess returns is commonly defined as:
A) total portfolio returns, minus the market rate.
B) total portfolio returns, minus the risk-free rate.
C) (portfolio returns minus the risk-free rate) divided by beta.
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q31: According to numerous studies conducted by various
Q32: R<sup>2</sup> is a good measure of efficient
Q33: In general, the best portfolio managers are
Q34: The effectiveness of portfolio diversification can be
Q35: The Brinson, Hood, and Beebower (BHB) study
Q37: If the portfolio return is 10%, and
Q38: Studies by Ippolito and Goodwin indicate that
Q39: A mutual fund with excess returns very
Q40: A portfolio manager with a beta less
Q41: Asset allocation represents an attempt by individuals