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.

---

Definitions:

Individual Liberties

Denotes the personal freedoms and rights that are guaranteed to individuals by law, typically protected against government infringement.

Ideological Conflict

A struggle between people with different sets of ideas, beliefs, or values, often generating political or social discord.

Concurring

The act of agreeing or expressing agreement with a decision or opinion, typically used in legal contexts, such as judges agreeing with the majority opinion in court.

Dissenting Opinions

Judicial opinions that disagree with the majority decision in a court ruling, offering alternative reasoning or interpretations of the law.