Suppose Two Portfolios Have the Same Average Return and the Same

question 30

Multiple Choice

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

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

---

Definitions:

Desire For Power

A strong motivation to have control or influence over others or situations.

Sadistic Tendencies

A psychological pattern characterized by deriving pleasure from inflicting pain, suffering, or humiliation on others.

Sexual Consent

An agreement between participants to engage in sexual activity, characterized by informed, freely given, and mutual approval.

Behavioral Interpretations

The process of understanding actions and behaviors through the analysis of underlying psychological mechanisms and social contexts.