What Is the Treynor Ratio of a Portfolio Comprised of 45

question 87

Multiple Choice

What is the Treynor ratio of a portfolio comprised of 45 percent portfolio A and 55 percent portfolio B? The risk-free rate is 3.12 percent and the market risk premium is 8.5 percent.

• A).041
• B).058
• C).069
• D).114
• E).136

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Definitions:

Deindividuation

A concept in social psychology that refers to the loss of self-awareness in groups, which can lead to disinhibited and impulsive actions.

Social Loafing

The phenomenon where individuals exert less effort when working in a group compared to when working alone.

Group Outcomes

The results or consequences of actions taken by a group as a whole, which can affect the group’s cohesion, performance, and individual member's satisfaction.

Less Accountable

Refers to a reduced sense of responsibility or obligation to justify one's actions or decisions to others.