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:

Financial Reports

Formal records or statements summarizing the financial activities, position, and performance of a business, organization, or individual.

Temporal

Relating to time or the sequential order in which events occur.

Casual

An informal, relaxed approach or style, often applied to dress codes, conversation, or workplace environment.

Intuitive Judgments

Decision making that is based on instinctive feelings rather than conscious reasoning or detailed analysis.