Suppose Two Portfolios Have the Same Average Return and the Same

question 38

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but Buckeye Fund has a lower 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:

Team Members

Individuals who are part of a group collaborating towards a common goal or project.

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Teams composed of members from diverse functional areas within an organization, working together towards a common goal.

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The process of teaching or acquiring skills, knowledge, or competencies as a result of the teaching of vocational or practical skills and knowledge.

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Objectives shared among individuals or groups that necessitate cooperation, often used to resolve conflicts.