Suppose Two Portfolios Have the Same Average Return and the Same

question 59

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 Husker Fund. According to the Treynor 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.
• E) None of the options are correct.

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Definitions:

Strategic Plans

Strategic plans are long-term, high-level plans made by an organization to achieve specific goals, outlining the organization's mission, vision, and how it will differentiate itself from competitors.

Incremental Plans

Planning methodology that involves making small or minor updates or changes instead of large, comprehensive shifts.