What Is the Treynor Ratio of a Portfolio Comprised of 45

question 36

Multiple Choice

What is the Treynor ratio of a portfolio comprised of 45% Portfolio A and 55% Portfolio B?
$\begin{array}{lrr}&\text{A}&\text{B}\\\text { Neight } & 45 \% & 55\% \\\text { Avg Return } & 13.60 \% & 8.40 \% \\\text { Std Dev } & 17.20 \% & 6.40 \%\\\text{Beta}&1.38&0.87\end{array}$

The risk-free rate is 3.12% and the market risk premium is 8.5%.

• A).041
• B).058
• C).069
• D).114
• E).136

---

Definitions:

Mental Age

A concept used to describe the intellectual capability of a person, expressed as the age at which an average individual reaches the same level of understanding or ability.

IQ

A measure of a person's intelligence, usually represented as a score derived from standardized tests.

Validity

The extent to which a test, measurement, or research accurately represents or measures what it is intended to.

Sex Differences

Variations in characteristics or behaviors between males and females, often influenced by biological, genetic, or cultural factors.