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Which statement regarding performance of a portfolio is CORRECT? Investors are always looking to find portfolios with negative alphas, since they are undervalued. O
Which statement regarding performance of a portfolio is CORRECT? Investors are always looking to find portfolios with negative alphas, since they are undervalued. O Alpha is a more accurate performance indicator than the information ratio. Sharpe ratio is using systematic risk for the performance measurement. Sharpe, Treynor, and Jensen are all using reward to risk ratio to measure the performance. As the information ratio is getting closer to zero, alpha is becoming less reliable.
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