Assume That as a Portfolio Manager the Beta of Your

question 74

Multiple Choice

Assume that as a portfolio manager the beta of your portfolio is 1.2 and that your performance is exactly on target with the SML data under condition 1. If the true SML data is given by condition 2, how much does your performance differ from the true SML?

• A) 2 percent lower
• B) 1 percent lower
• C) 5 percent lower
• D) 1 percent higher
• E) 2 percent higher

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Definitions:

Cholecystokinin

A hormone secreted by the small intestine that stimulates the release of digestive enzymes from the pancreas and bile from the gallbladder.

Leptin

A hormone produced by fat cells that helps to regulate body weight by inhibiting hunger and thereby reducing food intake.

Insulin

A substance secreted by the pancreas that controls levels of sugar in the blood by aiding in the absorption of glucose into the body's tissues.

Oxytocin

A hormone and neurotransmitter often called the "love hormone" for its role in social bonding, childbirth, and maternal behaviors.