Treynor's Measure Is a Ratio of Excess Return to Systematic

question 57

True/False

Treynor's measure is a ratio of excess return to systematic risk.

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Definitions:

360-Day Year

An accounting convention that simplifies interest calculations by assuming all months have 30 days, resulting in a 360-day year.

Bond

A fixed income instrument representing a loan made by an investor to a borrower, typically corporate or governmental.

Purchase Cost

The total expense incurred to acquire an asset, including the purchase price and associated costs.

360-Day Year

A financial convention or simplification to treat all months as 30 days in duration for the ease of interest calculations and financial analysis.