Multiple Choice
Allison's portfolio has a beta of 1.5 and earns a return of 15%. Brianna's portfolio has a beta of 1.0 and earns a return of 11%. The risk-free rate is 3%. According to the Treynor measure,
A) Allison has the better portfolio.
B) Brianna has the better portfolio.
C) the portfolio's are equally desirable.
D) the answer depends on Allison and Brianna's risk tolerance.
Correct Answer:

Verified
Correct Answer:
Verified
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