Suppose Two Portfolios Have the Same Average Return and the Same

question 56

Multiple Choice

Suppose two portfolios have the same average return and the same standard deviation of returns, but Buckeye Fund has a lower beta than Husker Fund. According to the Sharpe measure, the performance of Buckeye Fund

• A) is better than the performance of Husker Fund.
• B) is the same as the performance of Husker Fund.
• C) is poorer than the performance of Husker Fund.
• D) cannot be measured as there are no data on the alpha of the portfolio.

---

Definitions:

Romantic Partner

An individual with whom one shares a significant, often affectionate or loving, relationship.

Stepparents

Adults who become parents through marrying or partnering with individuals who have children from a previous relationship, rather than biologically.

Realistic Expectations

Understanding and accepting the limits of what is achievable in a given situation, leading to more attainable goals and reduced disappointment.

Family Life

The daily interactions and relationships among members of a household, encompassing various domestic and kinship ties.