Suppose Two Portfolios Have the Same Average Return and the Same

question 28

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 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 are no data on the alpha of the portfolio.

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Definitions:

Coolidge

refers to Calvin Coolidge, the 30th President of the United States, known for his quiet demeanor and laissez-faire approach to governance.

Conceptualize Negotiations

The process of understanding negotiations as a strategic and structured form of communication aimed at reaching a mutual agreement.

Kolb

Refers to David Kolb's Experiential Learning Theory which suggests that learning is a process where knowledge is created through the transformation of experience.

Coolidge

Typically refers to Calvin Coolidge, the 30th President of the United States, known for his conservative policies and quiet demeanor.