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:

ANOVA F Test

A statistical test used to compare the means of three or more groups to see if at least one group mean is different from the others.

Boxplots

A graphical representation of the distribution of data based on a five-number summary: minimum, first quartile, median, third quartile, and maximum.

Energy Consumption

The amount of energy consumed by processes, individuals, appliances, or systems, often measured in units like kilowatt-hours (kWh) or joules.

Estimate of the Contrast

A statistical measure used to compare differences between group means in a hypothesis testing context.