Need To Know Flashcards

(5 cards)

1
Q

actual rate of return minus the risk-free rate of return

A

Sharpe ratio

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2
Q

The true rate of return

A

the nominal rate minus inflation rate

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3
Q
A
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4
Q

NPV of zero indicates

A

the market is highly efficient.

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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

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