Consider the Treynor-Black Model

question 40

Multiple Choice

Consider the Treynor-Black model.The alpha of an active portfolio is 3%.The expected return on the market index is 18%.The standard deviation of the return on the market portfolio is 25%.The nonsystematic standard deviation of the active portfolio is 15%.The risk-free rate of return is 6%.The beta of the active portfolio is 1.2.The optimal proportion to invest in the active portfolio is

• A)50.0%.
• B)69.4%.
• C)72.3%.
• D)80.6%.

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Definitions:

Relational Psychoanalytic Therapy

A therapeutic approach that emphasizes the importance of interpersonal relationships and the therapist-client relationship in psychological development and healing.

Short-term Psychodynamic Therapy

A therapeutic approach that focuses on uncovering and working through unconscious processes, in a brief timeframe.

Autonomic Nervous System

The part of the nervous system that controls and regulates involuntary bodily functions, including heart rate, digestion, respiratory rate, pupillary response, and more.

Social Connectedness

The degree to which individuals or communities are socially close, interactive, or supportive of each other.