FIN 402 Expect Success/uophelp.com FIN 402 Expect Success/uophelp.com | Page 25

13. The most common measure of __________ is the spread between the
number of stocks which advance in price and the number of stocks which
decline in price.
14. If the utility you derive from your next dollar of wealth does not
depend on the level of your wealth but on the changes in your current
wealth you are exhibiting
15. Problems with behavioral finance include:
16. A mutual fund with a beta of 1.1 has outperformed the S&P500 over
the last 20 years. We know that this mutual fund manager
_______________________.
17. Consider the Sharpe and Treynor performance measures. When a
pension fund is large and well diversified in total and it has many
managers, the __________ measure is better for evaluating individual
managers while the __________ measure is better for evaluating the
manager of a small fund with only one manager responsible for all
investments that may not be fully diversified.
19. You wish to evaluate the three mutual funds using the Sharpe measure
for performance evaluation. The fund with the highest Sharpe measure of
performance is
20. You wish to evaluate the three mutual funds using the Treynor
measure for performance evaluation. The fund with the highest Treynor
measure of performance is
21. You wish to evaluate the three mutual funds using the Jensen measure
for performance evaluation. The fund with the highest Jensen measure of
performance is
22. The total excess return on the managed portfolio was __________.
23. The contribution of asset allocation across markets to the total excess
return was __________.