If all ___ are ___ in the Treynor-Black model,there would be no reason to depart from the passive portfolio.
A) alphas; zero
B) alphas; positive
C) betas; positive
D) standard deviations; positive

Question

Quizplus · Accepted Answer

In the Treynor-Black model, if all alphas are zero, it indicates that no security is expected to outperform the market on a risk-adjusted basis, thus there is no reason to deviate from the passive portfolio.

If All ___ Are ___ in the Treynor-Black Model,there Would

If All _ Are _ in the Treynor-Black Model,there Would