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

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Definitions:

Meiosis

A specialized form of cell division that reduces the chromosome number by half, resulting in the production of four gamete cells, each genetically distinct from the parent cell that gave rise to them.

DNA

Deoxyribonucleic acid, the molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Sister Chromatids

Sister chromatids are two identical copies of a single replicated chromosome that are connected by a centromere and eventually separated during cell division.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of haploid sex cells or gametes.