Question

1. A wealthy investor is evaluating the performance of 3 investment managers. He wants to select one of the three managers to manage his own portfolio which comprise largely of shares in his own listed company. Which of the following should he use to evaluate the managers' performance?

A. M2.

B. Treynor ratio.

C. Jensen alpha.

2. A factor associated with the widespread adoption of algorithmic trading is increased:

A. Market efficiency

B. Average trade sizes

C. Trading destinations

3. A benefit of distributed ledger technology (DLT) favouring its use by the investment industry is its:

A. Scalability of underlying systems

B. Ease of integration with existing systems.

C. Streamlining of current post-trade processes

Answer 1

Y o Tersen alphe! It is based on Sychematic rick. It is the actual return less return under CAPM. The value of alpha is used by the managers of poutholas bely a representation of the maximum an inver for should pay for the ective management of that postale & The Trading destination Cortists of electronic exchanges alternative trading system and date pools. In such enviroment when markets are continuously reflecting reale time information and Changing conditions algorithmic trading has been viewed as an important tool. The Dit is very helpful to reducing Complexrety, time and corf because it has the potentral to reamline the earthing complex and labor intensive processed by growdry real time trade vecification, reconciliation and settlement.