Suppose Two Portfolios Have the Same Average Return and the Same

question 47

Multiple Choice

Suppose two portfolios have the same average return and 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 are no data on the alpha of the portfolio.

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Definitions:

Inherits

The process by which genetic information is passed on from parents to their offspring, determining certain characteristics of the offspring.

Four Alleles

A condition where four alternative versions of a gene exist within a population, contributing to genetic diversity.

Map Units

A unit of measurement used in genetics to describe the distance between genes on a chromosome, equivalent to a 1% recombination frequency.

Two Loci

Refers to a situation involving two different locations within the genome that can have genetic markers or genes of interest.