n NISM Certifications
V-A NISM Series V-A
Medium

To measure the fund managers' performance, the difference between scheme’s actual return and its optimal return is calculated and this is known as _____ .

Practice question from Nism Va Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Alpha

    Correct answer

  2. B

    Beta

  3. C

    Sharpe

  4. D

    Treynor

Why this is the answer

Alpha measures the difference between the scheme’s actual return and the optimal return, assessing the fund manager's performance relative to a benchmark.

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