Suppose Two Portfolios Have the Same Average Return and the Same

question 42

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 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:

Hoarseness

A voice abnormality characterized by changes in vocal clarity and tone, often due to irritation or infection of the vocal cords.

ABGs

Arterial Blood Gases, a test that measures the acidity (pH) and levels of oxygen and carbon dioxide in the blood from an artery.

Dust Particles

Tiny fragments of solid material that are suspended in the air and can accumulate on surfaces.

Abnormal Condition

Any state of health that deviates from the normal or healthy condition.