Suppose Two Portfolios Have the Same Average Return and the Same

question 68

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but portfolio A has a lower beta than portfolio B. According to the Treynor measure, the performance of portfolio A

• A) is better than the performance of portfolio B.
• B) is the same as the performance of portfolio B.
• C) is poorer than the performance of portfolio B.
• 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:

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors via intermediate bipolar cells and transmit it to the brain.

Thalamus

A brain structure that acts as a relay station for sensory and motor signals to the cerebral cortex.

Neurons

Specialized cells transmitting nerve impulses; the basic building blocks of the nervous system.

Color Blindness

A visual impairment where an individual has difficulty distinguishing between certain colors, often red and green.