A Portfolio with a Beta of 0

question 110

Multiple Choice

A portfolio with a beta of 0.9 has an expected return of 11 percent and a standard deviation of 24 percent. The expected return of the market is 12 percent, and the risk-free is 5 percent. What is the Treynor ratio for the portfolio?

• A) 0.0701
• B) 0.0667
• C) 0.0775
• D) 0.0810
• E) 0.0725

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Definitions:

Small Meals

Eating approach involving consuming lower quantity food portions more frequently throughout the day.

Energy Drinks

Beverages containing stimulant compounds, usually caffeine, which are marketed as providing mental and physical stimulation.

Mediterranean Diet

A dietary pattern inspired by the traditional eating habits of countries bordering the Mediterranean Sea, emphasizing plant-based foods, healthy fats, and moderate consumption of fish and poultry.

Food Pyramid

A graphical representation designed to illustrate the recommended amount and types of foods that make up a healthy diet.