Who first used alpha to evaluate mutual fund managers, and when?
AMichael Jensen, 1968
BWilliam Sharpe, 1966
CJack Treynor, 1961
DEugene Fama, 1970
Answer & Solution
Correct answer: A. Michael Jensen, 1968
Michael Jensen introduced the measure for mutual fund evaluation in 1968.
Keep practising Asset Allocation
Browse all Asset Allocation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In UK gilt market guides, modified duration is often called what?What does key rate duration capture that ordinary duration does not?Fisher-Weil duration discounts each cash flow at which rate?Which feature produces negative convexity in a bond?Effective duration is used for securities such as callable bonds because their what changeDuration alone becomes less accurate as the yield change does what?What improves a duration estimate when yields change by a large amount?What does DV01 express?