The US Treasury Bill Is Yielding 2

question 43

Multiple Choice

The U.S. Treasury bill is yielding 2.8 percent and the market has an expected return of 11.6 percent. What is the Treynor ratio of a correctly-valued portfolio that has a beta of .92, and a standard deviation of 12.2 percent?

• A) .074
• B) .088
• C) .102
• D) .619
• E) .628

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Definitions:

Law-abiding

Characteristic of individuals who consistently follow and adhere to the laws of their community or nation.

Mob

A large and disorderly crowd of people often involved in chaotic or aggressive behavior, sometimes resulting in riots or vandalism.

Group Polarization

The phenomenon where a group's prevailing attitudes or beliefs become more extreme following group discussions.

Prospective Terrorists

Individuals who are considered to be at risk of engaging in acts of terrorism in the future.