The measure of performance defined as the difference between a fund's excess return and a point on the market line corresponding to the fund's beta is called:
A)alpha.
B)average differential return.
C)the Jensen measure.
D)More than one of the above

Question

Quizplus · Accepted Answer

The correct answer is D because both A (alpha) and C (the Jensen measure) describe the performance measure defined as the difference between a fund's excess return and a point on the market line corresponding to the fund's beta.

The Measure of Performance Defined as the Difference Between a Fund's