Suppose Two Portfolios Have the Same Average Return and the Same

question 34

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but Buckeye Fund has a lower beta than Wild Cat Fund. According to the Treynor 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.
• E) None of the options are correct.

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Definitions:

Referential Integrity

A concept in relational databases ensuring that relationships between tables remain consistent, typically enforced through the use of foreign keys.

Subdatasheet

A feature in databases that allows a user to view and edit related data from another table or query embedded within the main table.

Field's Properties

Attributes or settings that define characteristics of a database field, such as type, size, and default value.

Bonus Column

An additional column in a table or spreadsheet that is used to display extra information or calculations not included in the main data set.