A Portfolio Has a Treynor Ratio of

question 1

Multiple Choice

A portfolio has a Treynor ratio of .068, a standard deviation of 16.40 percent, a beta of 1.16, and an expected return of 14.3 percent. What is the risk-free rate?

• A) 1.32 percent
• B) 5.21 percent
• C) 5.39 percent
• D) 6.18 percent
• E) 6.41 percent

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Definitions:

Measures Of Central Tendency

Indicators of what is occurring in the mid-range or “center” of a group of scores. Three measures of central tendency are the mean, median, and mode.

Variability

The degree of dispersion or spread in a set of data points, indicating how much the scores differ from each other and from the average.

Mean

The mean value of a collection of numbers, determined by summing all the numbers and then dividing by the total count of those numbers.

Mode

The value that appears most frequently in a given set of data.