Multiple Choice
A portfolio with a beta of 0.9 has an expected return of 11 percent and a standard deviation of 24 percent. The expected return of the market is 12 percent, and the risk-free is 5 percent. What is the Treynor ratio for the portfolio?
A) 0.0701
B) 0.0667
C) 0.0775
D) 0.0810
E) 0.0725
Correct Answer:
Verified
Correct Answer:
Verified
Q104: The mean of the normal distribution is
Q105: You are comparing three portfolios that have
Q106: While you can lend at the risk-free
Q107: You are a very conservative investor
Q108: _ assesses risk by stating the probability
Q109: Your portfolio has an annualized standard deviation
Q111: The major difference between the Sharpe ratio
Q112: The risk premium of a portfolio divided
Q113: Hermitage stock has an expected return of
Q114: The Sharpe ratio is best utilized for