Suppose Two Portfolios Have the Same Average Return, the Same

question 19

Multiple Choice

Suppose two portfolios have the same average return, the same standard deviation of returns, but Buckeye Fund has a lower beta than Gator Fund.According to the Treynor measure, the performance of Buckeye Fund

• A)is better than the performance of Gator Fund.
• B)is the same as the performance of Gator Fund.
• C)is poorer than the performance of Gator Fund.
• D)cannot be measured as there are no data on the alpha of the portfolio.
• E)None of the options

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