Need To Know Flashcards
(5 cards)
1
Q
actual rate of return minus the risk-free rate of return
A
Sharpe ratio
2
Q
The true rate of return
A
the nominal rate minus inflation rate
3
Q
A
4
Q
NPV of zero indicates
A
the market is highly efficient.
5
Q
Under modern portfolio theory (MPT), all portfolios that can be constructed from a given set of stocks is referred to as
A
the feasible set