What Is the Treynor Ratio of a Portfolio Comprised of 40

question 102

Multiple Choice

What is the Treynor ratio of a portfolio comprised of 40% Portfolio A, 25% Portfolio B, and 35% Portfolio C?
$\begin{array}{lccrr}\text { Asset } & \text { Weight } & \text { Avg Return } & \text { Std Dev } & \text { Beta } \\\text { A } & 40 \% & 15.30 \% & 17.20 \% & 1.56 \\\text { B } & 25 \% & 10.50 \% & 9.80 \% & .95 \\\text { C } & 35 \% & 13.30 \% & 14.10\% &1.25\end{array}$

The risk-free rate is 2.9% and the market risk premium is 8.6%.

• A).054
• B).062
• C).070
• D).081
• E).102

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Definitions:

Functional Conflict

Results in positive benefits to the group.

Creativity

Creativity involves the use of imagination or original ideas to create something; it is a fundamental process in innovation.

Manifest Conflict

The visible and explicit display of disagreement, competition, or antagonism between individuals or groups.

Expressed Openly

The act of sharing thoughts, feelings, or opinions in a straightforward and uninhibited manner.