lcai

V6, page 174
However, it is pos- sible for the Sharpe ratio and M2 to identify a manager as not skillful, although the ex post alpha and the Treynor measure come to the opposite conclusion. This outcome is most likely to occur in instances where the manager takes on a large amount of nonsystematic risk in the account relative to the account’s systematic risk.

this is B portfolio, high non-systematic, worse diversification, therefore 2. is True.