Suppose Two Portfolios Have the Same Average Return,the Same Standard

question 43

Multiple Choice

Suppose two portfolios have the same average return,the same standard deviation of returns,but Buckeye Fund has a higher beta than Gator Fund.According to the Sharpe 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 is no data on the alpha of the portfolio.
• E)none of the above is true.

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Definitions:

Knowledge

In criminal law, the awareness that a particular result will probably occur.

Battery

The unlawful physical acting upon a threat, characterized by the use of force against another, resulting in harmful or offensive contact.

Aggravated Menacing

is a criminal offense that involves threatening harm to another individual with the intent to cause fear or harm, in a manner more severe than simple menacing.

Violence

The use of physical force with the intent to injure, damage, or kill.