Your Portfolio Has a Beta of 1

question 17

Multiple Choice

Your portfolio has a beta of 1.05, a standard deviation of 14.3%, and an expected return of 14.5%. The market return is 11.3% and the risk-free rate is 3.1%. What is the Treynor ratio?

• A).015
• B).080
• C).109
• D).482
• E).510

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Definitions:

Activity Sheet

A printed page containing tasks or exercises designed to facilitate learning or engagement in a specific topic.

Modeling

A method of learning that involves observing and imitating others' behaviors.

Smiling

The act of expressing happiness, friendliness, or amusement through curving the lips upward.

Imitates

To copy or mimic the actions, behaviors, or characteristics of someone or something.