A Portfolio Has an Average Return of 14 Percent, a Standard

Multiple Choice

A portfolio has an average return of 14 percent, a standard deviation of 27 percent, and a beta of 1.15. The risk-free rate is 4.5 percent, and the expected return of the market is 12 percent. What is the Treynor ratio for the portfolio?

A) 0.0741
B) 0.0943
C) 0.0782
D) 0.0918
E) 0.0826