A Portfolio Has a Treynor Ratio of

question 73

Multiple Choice

A portfolio has a Treynor ratio of .055, a standard deviation of 13.3%, a beta of 1.22, and an expected return of 15.3%. What is the risk-free rate?

• A)6.18%
• B)7.21%
• C)7.39%
• D)8.18%
• E)8.59%

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Definitions:

Rhode Island

The smallest state in the United States, known for its coastal scenery and as a haven for religious freedom during its founding.

Representative

An individual who is elected to serve and act on behalf of a larger group of people, particularly in legislative or governmental roles.

Loyalists

Colonists who remained loyal to the British crown during the American Revolutionary War, often opposing the independence movement.

Virginia Plan

A proposal by Virginia delegates for a bicameral legislative branch during the drafting of the United States Constitution in 1787, emphasizing representation based on state population or financial contributions.