This performance measure computes the risk premium per unit of systematic risk. It uses the systematic risk of the portfolio as the risk parameter. The systematic risk is that part of the total risk of an asset which cannot be eliminated through diversification. a) Sharpe ratio b) Treynor ratio c) Jensen's alpha d) risk-free rate The performance measure represents the amount by which the average return of the portfolio deviates from the expected return given by the Capital Asset Pricing Model. A measure greater than zero suggests that the portfolio earned a rate of return in excess of the expected return of the portfolio. a) Sharpe ratio b) Plato's Delta c) Treynor ratio d) Jensen's alpha An Alpha equal to zero suggests that: a) the portfolio earned a rate of return equal to the expected return of the portfolio b) the portfolio earned a rate of return in excess of the expected return of the portfolio c) the portfolio earned no return d) the portfolio earned a rate of return less than the expected return of the portfolio This performance measure computes the risk premium of the investment portfolio per unit of total risk of the portfolio. The total risk is the standard deviation of returns of the portfolio. a) Treynor ratio b) Sharpe ratio c) Modigliani model d) Jensen's alpha