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

---

Definitions:

Menstrual Cycles

The regular natural change that occurs in the female reproductive system that makes pregnancy possible, typically lasting about 28 days.

Pheromones

Chemical substances produced and released into the environment by animals, including humans, affecting the behavior or physiology of others of its species.

Hearing Loss

A decrease in the ability to perceive sounds, ranging from mild to profound, which may affect one or both ears.

Olfaction

The sense of smell, one of the five senses.