Suppose Two Portfolios Have the Same Average Return and the Same

question 69

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 Wild Cat Fund. According to the Sharpe measure, the performance of Buckeye Fund

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

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Definitions:

Red Pulp

A tissue in the spleen composed of blood-filled sinuses and splenic cords, involved in filtering blood and removing aged or damaged red blood cells.

White Pulp

Lymphatic tissue in the spleen composed of lymphocytes and macrophages, involved in the immune response.

Germinal Center

An area inside lymph nodes where mature B cells grow, evolve, and alter their antibody genes while responding to an immune challenge.

Afferent Vessels

Blood vessels that carry blood toward a particular organ or tissue, often referring to the vessels entering an organ.