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Suppose Two Portfolios Have the Same Average Return,the Same Standard

Question 3

Multiple Choice

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 __________.


A) is better than the performance of portfolio B
B) is the same as the performance of portfolio B
C) is poorer than the performance of portfolio B
D) cannot be measured as there is no data on the alpha of the portfolio
E) none of the above is true.

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