Question
Two portfolios, A and B, same average return and same standard deviation of returns. The average risk-free return is 2%. However, portfolio As beta is
Two portfolios, A and B, same average return and same standard deviation of returns. The average risk-free return is 2%. However, portfolio As beta is twice that of portfolio B. According to the sharpe measure:
A. A is superior
B. B is superior
C. Need more information
D. Investor should be indifferent between both.
Need explaination, thank you!
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Dynamics Of International Finance
Authors: Ruchi Mehrotra Joshi
1st Edition
1685078389, 978-1685078386
