A Portfolio Has an Average Return of 9

question 27

Multiple Choice

A portfolio has an average return of 9.7 percent,a standard deviation of 8.6 percent,and a beta of .72.The risk-free rate is 2.1 percent.What is the Treynor ratio?

• A).098
• B).106
• C).121
• D).636
• E).884

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Definitions:

Free Fire Zones

Areas designated during armed conflict where any person encountered can be shot on sight, typically used to denote enemy-controlled areas where combatants may assume anyone to be hostile.

Détente

A period of improved relations between the United States and the Soviet Union during the Cold War, marked by the signing of treaties and a reduction in hostility.

Southern Strategy

A political strategy employed by some U.S. political parties or candidates to gain support in the Southern states, often by appealing to racism against African Americans.

John F. Kennedy

The 35th President of the United States, serving from 1961 until his assassination in 1963, known for his charismatic leadership during the Cold War era.