Question: 1. Suppose two portfolios have the same average return, the same standard deviation of returns, but portfolio A has a higher beta than portfolio B.

1. Suppose two portfolios have the same average return, the same standard deviation of returns, but portfolio A has a higher beta than portfolio B. According to the Sharpe measure, the performance of portfolio A

is better than the performance of portfolio B.is the same as the performance of portfolio B.is poorer than the performance of portfolio B.cannot be measured as there are no data on the alpha of the portfolio.None of the options

2.Suppose two portfolios have the same average return, the same standard deviation of returns, but portfolio A has a lower beta than portfolio B. According to the Treynor measure, the performance of portfolio A is better than the performance of portfolio B. is the same as the performance of portfolio B. is poorer than the performance of portfolio B. cannot be measured as there are no data on the alpha of the portfolio. None of the options

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Portfolio Performance Evaluation 1. Hedge funds I) are appropriate as a sole investment vehicle for an investor. II) should only be added to an already well-diversified portfolio. III) pose...

Suppose two portfolios have the same average return, the same standard deviation of returns, but portfolio x has a higher beta than :portfolio Y . According to the Sharpe measure, the performance of...

No need for any explanation, please just provide answers for these multiple choice questions. 6.Which one of the following statements concerning the primary market is correct? a.A transaction in the...

Company XYZ currently pays a dividend of 4 per share on its common stock which is expected to grow 10% a year for the next 2 years. After that time, the dividend is expected to grow at 5% per year...

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

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

Suppose two portfolios have the same average return, the same standard deviation of returns but The B Fund has a lower beta than The G Fund. According to the Treynor measure , the performance of The...

Suppose two portfolios have the same averge return, the same standard deviation of returns, but portfolio X has a higher beta than portfolio Y. According to the Sharpe measure, the performance of...

The minimum-variance zero-beta portfolio most likely has some of O a, unsystematic risk and no systematic risk b. systematic risk and no unsystematic risk O c. systematic and unsystematic risk Clear...

ion 19 ered Suppose two portfolios have the same average return, the same standard deviation of return but portfolio A has a higher beta than portfolio B. According to the Sharpe ratio, portfolio A's...

Convex Preferences and optimal solutions. Let denote the consumer's preference relation on C =R2. We say a preference relation is convex (re- spectively, strictly convex) if for any two bundles x and...

Cambridge Company is a small editorial services company owned and operated by Dave Maier. On December 31, 2008, the end of the current year, Cambridge Company's accounting clerk prepared the...

dynamic efficiency uses discounting to equate the value of cost and benefits that occur at different points in time

1 ) Cashmere Soap Corporation had the following items listed in its trial balance at 1 2 / 3 1 / 2 0 2 4 : Currency and coins $ 6 5 0 Balance in checking account 2 , 6 0 0 Customer checks waiting to...

Intermediate: Decision-making and non- graphical CVP analysis York pic was formed three years ago by a group of research scientists to market a new medicine that they had invented. The technology...

Intermediate: Calculation of break-even points and limiting factor decision-making You are employed as an accounting technician by Smith, Williams and Jones, a small firm of accoun tants and...

Intermediate: Marginal costing and absorption costing profit computations and calculation of break-even point for a given sales mix A company has two products with the following unit costs for a...