What Is the Treynor Ratio of a Portfolio Comprised of 25

question 91

Multiple Choice

What is the Treynor ratio of a portfolio comprised of 25 percent portfolio A, 35 percent portfolio B, and 40 percent portfolio C? The risk-free rate is 3.6 percent and the market risk premium is 8.2 percent.

• A) .054
• B) .062
• C) .070
• D) .081
• E) .102

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Definitions:

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, excluding the nucleus, containing organelles and the site of most cellular activities.

Lactate

A compound produced in the body during the anaerobic conversion of glucose to energy, often associated with muscle fatigue.

NAD+

Nicotinamide adenine dinucleotide, a coenzyme found in all living cells that is involved in redox reactions, carrying electrons from one reaction to another.

Oxygen

A chemical element (O) essential for most forms of life on earth, playing a key role in cellular respiration and energy production.