Suppose two portfolios have the same average return, the same standard deviation of returns, but Aggie Fund has a lower beta than Raider Fund.According to the Treynor measure, the performance of Aggie Fund
A)is better than the performance of Raider Fund.
B)is the same as the performance of Raider Fund.
C)is poorer than the performance of Raider Fund.
D)cannot be measured as there are no data on the alpha of the portfolio.

Question

Quizplus · Accepted Answer

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

Suppose Two Portfolios Have the Same Average Return, the Same