Question

What does Jensen's Alpha Ratio measure in the context of mutual fund performance?

a.

Differential between actual and expected portfolio return

b.

Volatility of portfolio returns

c.

Risk premium to portfolio beta ratio

d.

Expected total portfolio return

Answer: (a).Differential between actual and expected portfolio return Explanation:Jensen's Alpha Ratio measures the differential between the return actually earned on a portfolio and the return expected from the portfolio at various levels of risk.

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Q. What does Jensen's Alpha Ratio measure in the context of mutual fund performance?

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