A Portfolio Has an Average Return of 10

question 95

Multiple Choice

A portfolio has an average return of 10.9%, a standard deviation of 9.6%, and a beta of .63. The risk-free rate is 1.8%. What is the Treynor ratio?

• A).092
• B).106
• C).144
• D).164
• E).283

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Definitions:

Express Trust

A trust explicitly created by a settlor, typically in a written document, specifying how trust assets are to be managed and distributed.

Voluntary Action

An act done by choice or free will, without external compulsion.

Fiduciary Relationship

A trustworthy legal and ethical connection where the fiduciary is responsible for acting in the utmost interest of the principal or beneficiary.

Executor

An individual appointed to administer the estate of a deceased person in accordance with their will.