Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Mutual Fund,Venture Capital,Life Insurance Policies and AIFS knowledge to the test? Let's get started with our carefully curated MCQs!

Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 5 of 18

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Discuss
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.
Q42.
Who developed Jensen's Alpha Ratio?
Discuss
Answer: (b).Michael Jensen Explanation:Jensen's Alpha Ratio is named after Michael Jensen, who developed it.
Discuss
Answer: (a).Jensen's Alpha Ratio = (Return on Portfolio - Expected return) / ฮฑp Explanation:The formula for calculating Jensen's Alpha Ratio, where ฮฑp represents Jensen's Alpha.
Discuss
Answer: (a).Better performance of the fund compared to its portfolio beta Explanation:A positive alpha figure indicates better performance of the fund compared to its portfolio beta.
Q45.
What does Treynor Ratio measure in the evaluation of mutual fund performance?
Discuss
Answer: (a).Reward to volatility ratio Explanation:Treynor Ratio is described as a reward to volatility ratio.
Q46.
What does Fama's Net Selectivity Ratio measure in the evaluation of mutual fund performance?
Discuss
Answer: (a).Overall performance of the fund Explanation:Fama's Net Selectivity Ratio is developed to measure the overall performance of the fund through an analytical framework, considering various components of fund performance.
Q47.
Who developed Fama's Net Selectivity Ratio?
Discuss
Answer: (d).Eugene Fama Explanation:Fama's Net Selectivity Ratio is named after Eugene Fama, who developed it.
Discuss
Answer: (a).Successful selection of the right stocks for the portfolio Explanation:A positive value of Fama's Net Selectivity Ratio implies that the portfolio manager has been successful in selecting the right stocks for the portfolio.
Discuss
Answer: (b).Poor performance of the portfolio manager Explanation:The negative value of Fama's Net Selectivity Ratio indicates poor performance of the portfolio manager.
Discuss
Answer: (c).Fama's Net Selectivity = rp - [rf + (ฯƒp / ฯƒm) (rm - rf)] Explanation:The formula for calculating Fama's Net Selectivity Ratio, where various components like risk-free return, excess return, and selectivity are considered.