The USTreasury Bill Is Yielding 3

question 58

Multiple Choice

The U.S.Treasury bill is yielding 3.0 percent and the market has an expected return of 11.6 percent.What is the Treynor ratio of a correctly-valued portfolio that has a beta of 1.02,and a standard deviation of 12.2 percent?

• A) 0.074
• B) 0.086
• C) 0.102
• D) 0.619
• E) 0.628

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Definitions:

Market Approach

A strategy or philosophy that emphasizes free-market competition and consumer choice as the best way to allocate resources, promote efficiency, and foster innovation and economic growth.

Rights

Entitlements or privileges granted to individuals, typically by law or social agreement, which are considered fundamental to human dignity and social functioning.

Annas

George J. Annas, an influential figure in bioethics, known for advocating human rights in healthcare and medical ethics.

Organ Sales

The practice of selling organs for transplant, often controversial due to ethical, legal, and moral issues.