Assume That as a Portfolio Manager the Beta of Your

question 5

Multiple Choice

Assume that as a portfolio manager the beta of your portfolio is 1.2 and that your performance is exactly on target with the SML data under condition 1. If the true SML data is given by condition 2, how much does your performance differ from the true SML?

• A)2% lower
• B)1% lower
• C)5% lower
• D)1% higher
• E)2% higher

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Definitions:

Factory Employment

Work related to the operation of manufacturing facilities where goods are produced on a large scale.

Knowledge

Knowledge is the understanding, awareness, or familiarity gained through education or experience, encompassing facts, information, descriptions, or skills acquired through learning or practice.

Hunter-Gatherer Societies

Social and economic systems based on the hunting of wild animals and gathering of wild plants for subsistence.

Hunting Weapons

Tools and devices designed and used by humans to catch or kill wildlife.