Assume That as a Portfolio Manager the Beta of Your

question 43

Multiple Choice

Assume that as a portfolio manager the beta of your portfolio is 1.15 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) 2.53 percent lower
• B) 3.85 percent lower
• C) 2.53 percent higher
• D) 4.4 percent higher
• E) 3.85 percent higher

---

Definitions:

Subarachoid Space

The Subarachnoid Space is the area between the arachnoid membrane and pia mater around the brain and spinal cord, containing cerebrospinal fluid.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, providing cushioning and maintaining a stable environment.

CNS Tissue

Tissue that makes up the central nervous system, including the brain and spinal cord, responsible for processing and transmitting information through the body.

Protective Cushion

A safeguarding feature or mechanism that reduces the impact or shock experienced by an object or body part.