Assume That as a Portfolio Manager the Beta of Your

question 91

Multiple Choice

Assume that as a portfolio manager the beta of your portfolio is 1.4 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)2.0% lower
• B)0.5% lower
• C)0.5% lower.
• D)1.0% higher
• E)2.0% higher

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Definitions:

Ending Inventory

The total value of all unsold goods and materials a business has at the end of an accounting period.