You Are Comparing Three Portfolios That Have Differing Treynor Ratios

Multiple Choice

You are comparing three portfolios that have differing Treynor ratios. Given this, you

A) Know that the portfolio with the lowest Treynor ratio is under-priced
B) Should invest in the portfolio with the highest Treynor ratio
C) Can safely assume that the portfolios have differing levels of total risk
D) Know the portfolios are all mis-priced
E) Can safely assume that the portfolios have differing levels of market risk