Your Portfolio Has a Beta of 1

question 59

Multiple Choice

Your portfolio has a beta of 1.24, 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) .076
• C) .109
• D) .482
• E) .510

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Definitions:

Paid Family Leave

An employee benefit that provides paid time off work to care for a family member or for childbirth or adoption.

Work Week

The standard period of time during which work is done, usually defined as Monday through Friday, totaling approximately 40 hours in many countries.

Young Adults

Individuals in their late teens to early twenties, often considered a distinct developmental stage.

Marriage

A union between people that is recognized by law and society, creating specific rights and duties among the individuals, their offspring, and their extended families.