7- The Sharpe ratio is a measure of: A historical volatility. B downside deviation. C risk-adjusted performance. 8- The Sharpe ratio is a measure of the excess return on a portfolio compared with the: A beta of portfolio returns. B portfolio?s tracking error. C standard deviation of portfolio returns. 9- The criterion that a benchmark should be made up of assets that can be bought or sold by the fund manager is known as: A investability B compatibility C pre-specification. Homework 10-A fund manager who uses analytical and trading skills to try to beat a bench- mark is best described as a(n): A active manager. B index replicator. C passive manager. . 11- Tracking error for a passive investment fund is most likely: A lower than the tracking error for an active investment fund. B equal to the tracking error for an active investment fund. C higher than tracking error for an active investment fund. . 12- The consistent outperformance of an investment fund compared with its bench- mark is best described as: A beta. B alpha. C tracking error