A Portfolio Has an Expected Return of 13

question 68

Multiple Choice

A portfolio has an expected return of 13.8%, a beta of 1.14, and a standard deviation of 12.7%. The U.S. Treasury bill rate is 3.2%. What is the Treynor ratio?

• A).093
• B).138
• C).146
• D).835
• E).951

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Definitions:

Custodial Department

A division within an organization responsible for maintenance, cleaning, and security services.

Step-down Method

A cost allocation method used in accounting where overhead costs are assigned to departments in a sequential order, often starting with the department that incurs the most overhead, then allocating costs down to other departments based on predetermined criteria.

Personnel Department

A division within an organization responsible for managing human resources and employee-related issues.

Job-Order Costing

An accounting method that tracks production costs to specific jobs or orders, allowing for detailed cost analysis of each job.