Allison's Portfolio Has an Expected Return of 14% and a Beta

question 39

Multiple Choice

Allison's portfolio has an expected return of 14% and a beta of 1.37. Brianna's portfolio has an expected rate of return of 11% and a beta of 1. The risk-free rate is 3%. According to the Treynor measure,

• A) Allison has the better portfolio.
• B) Brianna has the better portfolio.
• C) The portfolio's are equally desirable.
• D) The answer depends on Allison and Brianna's risk tolerance.

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Definitions:

ICD-10-CM

International Classification of Diseases, Tenth Revision, Clinical Modification; a system used by physicians and healthcare providers to code and classify all diagnoses, symptoms, and procedures recorded in conjunction with hospital care in the U.S.

Numeric Or Alpha

Refers to data that can be represented as numbers (numeric) or letters (alpha).

ICD-9-CM

International Classification of Diseases, Ninth Revision, Clinical Modification, a system used in the United States until 2015 to code and classify morbidity data from inpatient and outpatient records, including physician offices.

ICD-10-CM

The International Classification of Diseases, Tenth Revision, Clinical Modification; a system used for coding and classifying diagnoses and procedures associated with hospital utilization in the United States.