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

question 6

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 is no data on the alpha of the portfolio.
• E)none of the above is true.

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Definitions:

Risks

The potential for experiencing harm, loss, or adverse effects in a given situation or for a specific condition.

Common Side Effects

Typical or frequently encountered undesirable effects associated with taking a particular medication or undergoing a specific treatment.

Obesity Drugs

Medications prescribed to assist in the reduction of excessive body weight or to manage obesity.

Thin Ideal

The cultural belief or societal standard that thinness is a desirable attribute, particularly in women, which can influence behavior and self-image.