Suppose Two Portfolios Have the Same Average Return and the Same

question 71

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but portfolio A has a higher beta than portfolio B. According to the Sharpe measure, the performance of portfolio A

• A) is better than the performance of portfolio B.
• B) is the same as the performance of portfolio B.
• C) is poorer than the performance of portfolio B.
• D) cannot be measured as there are no data on the alpha of the portfolio.
• E) None of the options are correct.

Recognize the structure and significance of T accounts in accounting.

Understand how various types of transactions (cash receipts, cash payments, revenues, expenses) are recorded.

Identify the components and purposes of accounts found in the chart of accounts.

Distinguish between asset, liability, and equity accounts and their normal balances.

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Definitions:

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A type of bacteria that is resistant to several antibiotics including methicillin, often causing hospital-acquired infections.

Pimples

Small, localized skin inflammations, often part of acne, resulting from the blockage of pores.

Pathogens

Microorganisms or viruses that can cause disease when they infect a host organism.

Reservoir

A reservoir is an artificial or natural lake where water is stored and often used as a source for drinking water, and for agricultural and recreational activities.