Suppose Two Portfolios Have the Same Average Return, the Same

question 26

Multiple Choice

Suppose two portfolios have the same average return, the same standard deviation of returns, but portfolio A has a higher beta than portfolio B.According to the Sharpe 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

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Definitions:

1309-1378

Dates defining the Avignon Papacy, a period when the popes resided in Avignon, France rather than in Rome, a situation that led to significant church conflict.

Papal Bull Unam Sanctam

A significant papal decree issued by Pope Boniface VIII in 1302, asserting the supreme spiritual authority of the Pope over kings and secular rulers.

Pope Boniface VIII

A Pope who reigned from 1294 to 1303, known for his conflicts with secular rulers and for issuing the Unam Sanctam, asserting papal supremacy.

Secular Rulers

Leaders or monarchs who hold authority in the political realm without specific endorsement from religious institutions.