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Question 3 Suppose two portfolios have the same average return and the same standard deviation of returns, but portfolio A has a lower beta than

Question 3

Suppose two portfolios have the same average return and 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

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 are no data on the alpha of the portfolio.

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