47. 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

48. According to numerous studies conducted by various professors, portfolio managers generally: A. outperform the market on a risk-adjusted basis. B. perform the same as the market in terms of risk-adjusted returns. C. under-perform the market. D. greatly outperform the market on a risk-adjusted basis.

49. One primary reason for the long-term average performance of mutual funds in general is: A. inflation. B. high transaction costs. C. volatile stock market conditions. D. None of the above

50. According to a study by John McDonald published in the Journal of Financial and Quantitative Analysis, portfolio managers generally: A. follow the objectives initially set for the portfolio. B. set objectives for the portfolio but don't follow them. C. have difficulty following the portfolio objectives. D. None of the above