Suppose Two Portfolios Have the Same Average Return and the Same

question 41

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but Buckeye Fund has a lower 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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Definitions:

Throat

The anterior part of the neck, starting from the base of the skull to the collarbone, which contains the pharynx and larynx and is involved in breathing, swallowing, and speaking.

Hypoxia

A condition in which there is insufficient oxygen in the tissues to maintain bodily functions.

Oxygen Levels

Oxygen levels refer to the concentration of oxygen in the blood, vital for bodily functions and monitored to assess respiratory and circulatory health.

Below-Normal

Referring to values or conditions that are less than the standard or expected level.