Part I. (Sentence Correction) All of the following statements are false. Please change the incorrect parts to make them true. DO NOT negate the sentence, unless necessary.

8. Index funds are depository receipts that give investors a pro rata claim on the capital gains and cash flows of securities held by financial institutions.

9. A benchmark portfolio is an example of active portfolios.

10. The Sharpe measure allows investors to determine the statistical significance of abnormal returns.

11. The Sharpe measure examines the risk premium per unit of systematic risk.

12. The Treynor ratio uses the mean excess return in the numerator divided by the amount of residual risk that the investor incurred in pursuit of those excess returns.

13. Consider the Sharpe and Treynor performance measures. When a pension fund is large and well diversified in total and it has many managers, the Sharpe measure is better for ranking individual managers. However, the Treynor measure is better for evaluating the sole manager of a small fund who is responsible for not fully diversified investments