Suppose Two Portfolios Have the Same Average Return and the Same

question 38

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 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:

Passive Immunity

Passive immunity is the transfer of active humoral immunity in the form of ready-made antibodies, from one individual to another.

Active Immunity

The immunity that occurs when the body is exposed to an antigen and produces its own antibodies in response.

Local Inflammation

Inflammation confined to a specific area of the body. Symptoms include redness, heat, swelling, pain, and loss of function.

Hemorrhage

Excessive bleeding or the escape of blood from a ruptured blood vessel.