Suppose Two Portfolios Have the Same Average Return and the Same

question 53

Multiple Choice

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

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