Suppose Two Portfolios Have the Same Average Return and the Same

question 64

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 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 are no data on the alpha of the portfolio.
• E) None of the options are correct.

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Definitions:

Institutional Collectivism

The degree to which organizational or societal practices encourage and reward collective distribution of resources and collective action.

Cultural Dimension

A framework for understanding how the values and behaviors of societies are influenced by their cultures, often used to compare cultures across different regions or groups.

Collective Action

Actions taken together by a group of people whose goal is to enhance their condition and achieve a common objective.

Organization

An entity composed of individuals working together towards a common goal, characterized by structured systems and processes to coordinate efforts efficiently.