Suppose Two Portfolios Have the Same Average Return and the Same

question 57

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but Roll Tide Fund has a lower 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.

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Definitions:

Field Diameter

The diameter of the field of view seen through the microscope, typically measured in millimeters or micrometers.

Magnification

The process of enlarging the appearance of an object as viewed through an optical instrument like a microscope or telescope.

Microscope Stage

The platform on a microscope where the specimen is placed for examination.

Focusing

The act of directing one's attention or vision towards something specific.