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Define the terms systematic risk, unsystematic risk and total risk. State whether each of the three measures, Sharpe ratio, Treynor ratio and Jensens Alpha, assumes
Define the terms systematic risk, unsystematic risk and total risk. State whether each of the three measures, Sharpe ratio, Treynor ratio and Jensens Alpha, assumes that the relevant risk is systematic risk, unsystematic risk, or total risk. Explain how each measure relates excess return and the relevant risk.
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