Suppose That Over the Same Period Two Portfolios Have the Same

question 15

Multiple Choice

Suppose that over the same period two portfolios have the same average return and the same standard deviation of return, 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 since there is no data on the alpha of the portfolio

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Definitions:

Buying Behaviour

The decision-making process and actions of consumers regarding the search for, selection, purchase, use, and disposal of goods and services.

Identity Negotiation

The process through which individuals reach agreements within themselves about their personal identities or manage their identities in social contexts.

Expectancy Disconfirmation Model

A theory that suggests consumer satisfaction is determined by the disparity between expected and actual product performance.

Innate Quality

A natural, intrinsic characteristic or property of an individual or object.