Consider the Theory of Active Portfolio Management

Multiple Choice

Consider the theory of active portfolio management. Shares A and B have the same positive alpha and the same non-systematic risk. Share A has a higher beta than share B. You should want ________ in your active portfolio.

A) equal proportions of Shares A and B
B) more of Share A than Share B
C) more of Share B than Share A
D) more information is needed to answer this question