Your Portfolio Has a Beta of 1

question 59

Multiple Choice

Your portfolio has a beta of 1.17,a standard deviation of 14.3 percent,and an expected return of 12.5 percent.The market return is 11.3 percent and the risk-free rate is 3.1 percent.What is the Treynor ratio?

• A).015
• B).080
• C).109
• D).482
• E).510

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Definitions:

Financial Statements

Comprehensive reports prepared from accounting records that present an entity's financial position, performance, and cash flows.

Business Segment

A distinct part of a company that can be identified by the products or services it provides or by the geographic markets it operates in, often reported separately in financial statements.

Segment Analysis

The practice of analyzing different business segments or units within a company to assess their performance or profitability.

Purchases Journal

A record keeping document where a business records all purchases of merchandise for resale.