Knowledge Base

← Financial Instruments, Crypto-Assets, and Their Risks

Questions

Which synthetic risk indicator has been mandatory in the Key Information Document since January 2023?

SRRI (Synthetic Risk and Reward Indicator)
SRI (Summary Risk Indicator)
MRM (Market Risk Measure)
CRM (Credit Risk Measure)

Which ratio measures the return premium per unit of systematic risk?

Sharpe ratio
Treynor ratio
Jensen's alpha
Beta

Which indicator is used to measure volatility in the Sharpe ratio?

Beta
Standard deviation of returns
VaR (Value at Risk)
Duration

What does a positive Jensen's alpha indicate?

Underperformance relative to the market
Performance in line with the market
Outperformance relative to the market
Excessive risk

SRI scale

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Categorize items by dragging them to the appropriate zones

Items to categorize:

Money market fund
Equity fund
Bond fund
Categories:

SRI 1-2

SRI 3-4

SRI 5-6

A Sharpe ratio below zero indicates that the investment outperforms a risk-free investment.

True
False

AMF Position DOC-2014-06 recommends the exclusive use of the Sharpe ratio to evaluate funds.

True
False