What Is the Bond Equivalent Yield on a 30-Day Treasury

question 87

Multiple Choice

What is the bond equivalent yield on a 30-day Treasury bill that has a bank discount yield of 2.01 percent?

• A)1.97 percent
• B)1.99 percent
• C)2.02 percent
• D)2.04 percent
• E)2.07 percent

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Definitions:

Beta

A rephrasing: A statistical estimate of a security's sensitivity to market movements, used to gauge its risk in comparison to the broader market.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking a given level of market risk.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market, and less than 1 indicates lower.

Comparison Universe

A benchmark or group of benchmarks used to evaluate the performance of an investment or fund.