Stock ABC $\text{'}$s alpha is closest to:

A$.-6\%$

B$.0\%$

C$.6\%$

Which of the following stock$($s$)$ would you consider as addition$($s$)$ to a portfolio made of the S&P $500?$

A$.$ Stock ABC

B$.$ Stock DEF

C$.$ Stock ABC and Stock DEF

If you create a portfolio made of stocks A and $B,$ and allocate across the $2$ stocks so that the portfolio is

$3$ times more risky than the S&P $500.$ The portfolio $\text{'}$s standard deviation is closest to:

A$.20\%$

B$.30\%$

C$.40\%$

Temporary deviations from the portfolio's strategic asset allocation in pursuit of short$-$term gains are

known as:

A$.$ Tactical asset allocation.

B$.$ Risk budgeting.

C$.$ Portfolio reconstitution.

Questions $22$ to $25$: use the data from the table below

Portfolio $Z^{\text{'}}\text{'}$s $M^2$ alpha is closest to:

A$.0\mathrm{.}84\%$

B$.2\mathrm{.}84\%$

C$.5\mathrm{.}84\%$

The market's Treynor ratio is closest to:

A$.0$

B$.0\mathrm{.}06$

C$.0\mathrm{.}32$

Portfolio $x\text{'}$s Jensen's alpha is closest to:

A$.-0\mathrm{.}004$

B$.0$

C$.0\mathrm{.}4\%$