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.

Question

Quizplus · Accepted Answer

The Treynor Index is a measure of average portfolio returns (in excess of the risk-free return) per unit of systematic risk (as measured by beta).

Suppose Two Portfolios Have the Same Average Return and the Same