Suppose Two Portfolios Have the Same Average Return, the Same

question 65

Multiple Choice

Suppose two portfolios have the same average return, the same standard deviation of returns, but Aggie Fund has a higher beta than Raider Fund.According to the Sharpe measure, the performance of Aggie Fund

• A)is better than the performance of Raider Fund.
• B)is the same as the performance of Raider Fund.
• C)is poorer than the performance of Raider Fund.
• D)cannot be measured as there are no data on the alpha of the portfolio.

---

Definitions:

Refractory Periods

The time period immediately following an action potential during which a neuron is unable to fire another impulse.

Phrenology

A now-discredited theory which postulated that bumps on the skull could predict mental traits and character.

Myelin Sheath

A fatty tissue layer segmentally encasing the axons of some neurons; enables vastly greater transmission speed as neural impulses hop from one node to the next.

Synaptic Gaps

The tiny spaces between neurons, across which neurotransmitters travel to transmit messages from one neuron to another.