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

question 68

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 Treynor 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:

Physical Response

The body's natural reaction to stimuli, which can include anything from stress responses to motor actions in response to environmental changes.

Organizational Distress

A state in which a company or organization experiences a significant decrease in performance, health, or vitality, often due to mismanagement, external pressures, or internal conflicts.

Participation Problems

Issues or challenges associated with involving individuals or groups effectively in decision-making processes within an organization.

Performance Decrement

A cost resulting from poor quality or low quantity of production, grievances, and unscheduled machine downtime and repair.