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.

Understand the purpose and legal status of international conventions issued by the United Nations Commission on International Trade Law.

Recognize the importance of cultural awareness in international business negotiations and contract formation.

Understand the history and development of the Diagnostic and Statistical Manual of Mental Disorders (DSM).

Differentiate between normal and abnormal behavior and understand the criteria for diagnosing psychological disorders.

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Definitions:

Random Variable

A variable whose possible values are outcomes of a random phenomenon, often denoted in probability and statistics.

Uncountable Number

A type of set or quantity of mathematical entities that cannot be paired with the natural numbers, indicating an infinite quantity that is not countably infinite.

Random Variable

A numerical variable that reflects the outcomes of an unpredictable event.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in statistical analysis.