Equity Investments Q109
0. Which of the following statements is most likely correct?
Statement 1: Alpha is used to measure the market sentiment.
Statement 2: Alpha is the difference between the return on the actively managed portfolio and the passive portfolio.
Statement 3: Alpha is the systematic risk of a security, using index as a proxy for the entire market.
- Option : B
- Explanation : Alpha is the difference between the return on the actively managed portfolio and the passive portfolio and is used to measure the riskadjusted return.
