Suppose Two Portfolios Have the Same Average Return and the Same

question 12

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but Buckeye Fund has a higher beta than Gator Fund.According to the Treynor measure, the performance of Buckeye Fund

• A)is better than the performance of Gator Fund.
• B)is the same as the performance of Gator Fund.
• C)is poorer than the performance of Gator Fund.
• D)cannot be measured as there are no data on the alpha of the portfolio.

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Definitions:

Formal Authority

Describes the power granted to an individual or position through a formal structure or hierarchy within an organization to make decisions and command obedience.

Conflict Resolution

The process of resolving disputes or disagreements between parties through dialogue, negotiation, or other methods to reach an agreement.

Forcing

A conflict resolution method where one party insists on their position without regard to the impact on the other parties involved.

Problem Solving

The process of identifying a challenge and developing strategies to address it effectively.