Allison's Portfolio Has an Expected Return of 14% and a Beta

question 1

Multiple Choice

Allison's portfolio has an expected return of 14% and a beta of 1.37.Brianna's portfolio has an expected rate of return of 11% and a beta of 1.The risk-free rate is 3%.According to the Treynor measure,

• A) Allison has the better portfolio.
• B) Brianna has the better portfolio.
• C) The portfolio's are equally desirable.
• D) The answer depends on Allsison and Brianna's risk tolerance.

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Definitions:

Prospect

A qualified person or organization that has the potential to buy a salesperson’s good or service.

Alternative-Choice Close

A sales technique where the salesperson presents multiple options to the prospect, assuming a sale in any case rather than asking for a yes or no answer.

Assumptive Close

An Assumptive Close is a sales technique where the salesperson assumes that the customer has decided to purchase, moving towards finalizing the sale without explicitly asking for it.

Prospect

A potential customer or client who has been identified as having the interest and authority to purchase a product or service.