A Portfolio Has an Average Return of 9

question 9

Multiple Choice

A portfolio has an average return of 9.7 percent,a standard deviation of 8.6 percent,and a beta of 0.72.The risk-free rate is 2.1 percent.What is the Treynor ratio?

• A) 0.098
• B) 0.106
• C) 0.121
• D) 0.636
• E) 0.884

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Definitions:

Well-organized Interest Groups

Organizations that coordinate the efforts of members to advocate or lobby for shared interests and goals in the policy-making process.

Rent-seeking Activities

Rent-seeking activities involve individuals or businesses trying to increase their share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.

Legal Structure

The organization of a business as determined by its legal status, such as a sole proprietorship, partnership, corporation, or LLC.

Property Income

Property income refers to earnings one receives from property investments, including rents, dividends, and interest.