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

question 4

Multiple Choice

Suppose two portfolios have the same average return,the same standard deviation of returns,but Buckeye Fund has a lower beta than Gator Fund.According to the Treynor 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:

Quantity Discounts

Price reductions offered to customers who purchase in large volumes, encouraging bulk buying and fostering customer loyalty.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product, including materials, labor, and overhead expenses.

Noncumulative Quantity Discounts

Price reductions offered for large purchases made in a single order, as opposed to discounts accumulated over time through multiple purchases.

Individual Order

A specific purchase request made by a customer for products or services, tailored to their personal requirements or preferences.