n NISM Certifications
X NISM Series X
Medium

Which measure assesses the excess return of a portfolio relative to systematic risk?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Jensen measure

  2. Treynor measure

    Correct answer

  3. C

    Sharpe measure

  4. D

    Fama measure

Why this is the answer

The Treynor ratio evaluates risk-adjusted returns based on beta, focusing on systematic risk.

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