What Is the Treynor Ratio of a Portfolio Comprised of 45

question 62

Multiple Choice

What is the Treynor ratio of a portfolio comprised of 45 percent portfolio A and 55 percent portfolio B?
P1P1_5.08AP1P1_EP1P1_12.70BP1P1_E
WeightP1P1_5.0845%P1P1_EP1P1_12.7055%P1P1_E
Avg ReturnP1P1_5.0813.60%P1P1_EP1P1_12.708.40%P1P1_E
Std DevP1P1_5.0817.20%P1P1_EP1P1_12.706.40%P1P1_E
BetaP1P1_5.081.38P1P1_EP1P1_12.700.87P1P1_E
The risk-free rate is 3.12 percent and the market risk premium is 8.5 percent.

• A) 0.041
• B) 0.058
• C) 0.069
• D) 0.114
• E) 0.136

---

Definitions:

Severe Drought

A prolonged period of significantly below-average precipitation, leading to water shortages, crop failure, and adverse ecological impacts.

Separation Anxiety

Separation anxiety is an emotional distress experienced by individuals, often children, when separated from parents or major attachment figures.

Securely Attached

Describes children or individuals who have developed strong and healthy emotional bonds with their caregivers, characterized by trust and a sense of safety.

Conventional

Pertaining to behaviors, beliefs, or norms that are widely accepted and followed by a society at a given point in time, often contrasted with "unconventional" or "alternative".