Question
Consider the following two alternatives: Alternative #1 Alternative #2 -0.06% portfolio return 0.18% portfolio return 0.7 beta 0.8 beta -6% alpha -3% alpha Sharpe ratio
Consider the following two alternatives:
| Alternative #1 | Alternative #2 |
| -0.06% portfolio return | 0.18% portfolio return |
| 0.7 beta | 0.8 beta |
| -6% alpha | -3% alpha |
| Sharpe ratio of 0.07 | Sharpe ratio of -0.08 |
Which Alternative performed better? is there a big difference? why did 1 alternative perform better than the other? provide an in-depth explanation
What could such a difference teach us?
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
