Suppose Two Portfolios Have the Same Average Return and the Same

question 14

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 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:

Dangerous

Something or someone that poses a risk of harm, injury, or threat to the safety of others.

Trafficking

Involves the illegal trade of humans for the purposes of forced labor, sexual slavery, or commercial sexual exploitation.

Extreme Poverty

A condition where individuals live below the international poverty line, facing severe deprivation of basic human needs such as food, safe drinking water, sanitation, health, shelter, and education.

Gender Inequality

The unequal treatment or perceptions of individuals based on their gender, leading to disparities in opportunity, resources, and power.