A Portfolio Has an Expected Return of 13

question 18

Multiple Choice

A portfolio has an expected return of 13.8 percent,a beta of 1.14,and a standard deviation of 12.7 percent.The U.S.Treasury bill rate is 3.2 percent.What is the Treynor ratio?

• A).093
• B).138
• C).146
• D).835
• E).951

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.

Remained

Stayed in the same place or condition; continued to be.

Doubled

Increased by 100 percent or made twice as large in size, amount, or number.

Quadrupled

To increase fourfold, or to become four times as large in quantity or value.