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Questions

Which quantitative criterion is considered a favourable signal for satisfactory performance?

A negative alpha over the recommended horizon
An information ratio below 0.5
A Sharpe ratio above 1
A tracking error above 5%

Which method is used to evaluate the absolute performance of open-ended UCITS according to GIPS standards?

Money-weighted return (MWR)
Time-weighted return (TWR)
Jensen's alpha
Information ratio

Which method is required by regulation to evaluate the absolute performance of closed-end funds such as private equity?

Time-weighted return (TWR)
Money-weighted return (MWR)
Jensen's alpha
Information ratio

Which indicator measures the volatility of the difference between a fund's return and its benchmark's return?

Jensen's alpha
Information ratio
Tracking error
Sharpe ratio

TWR formula

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Categorize items by dragging them to the appropriate zones

Items to categorize:

TWR
MWR
Categories:

Absolute performance for open-ended UCITS

Absolute performance for closed-end funds

An information ratio above 0.5 indicates inefficient active management.

True
False

AMF Instruction DOC-2011-24 requires that reported performance figures be gross of fees.

True
False