Your Portfolio Has a Beta of 1

question 59

Multiple Choice

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

• A) 0.015
• B) 0.080
• C) 0.109
• D) 0.482
• E) 0.510

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Definitions:

Nautical Dominance

Superiority or control over sea routes and maritime activities, often achieved through a country's powerful navy or a significant merchant marine force.

New England

A region in the northeastern United States, known for its colonial history, distinct seasons, and as the birthplace of America's industrial revolution.

John Peter Zenger

A New York printer and journalist whose 1735 acquittal in a libel case established important precedents for freedom of the press in the American colonies.

Free-Press Principle

The fundamental belief in the unrestricted right of the media to report news and express opinion, considered a cornerstone of democracy.