The Table Below Shows Selected Financial Data for the Turtle

question 125

Multiple Choice

The table below shows selected financial data for the Turtle Income fund,the Hare Growth fund,the market portfolio and the risk free asset.Calculate the Treynor Index for each of the funds.How do the Treynor Index measures for the two funds compare to the Market's Treynor Index value?

• A) Turtle < Hare < Market
• B) Turtle < Hare = Market
• C) Hare < Turtle < Market
• D) Hare < Turtle = Market
• E) Market < Hare < Turtle

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Definitions:

Informational Efficiency

A characteristic of financial markets where all relevant information is quickly and accurately reflected in security prices, allowing for fair and efficient trading.

Active Trading

The buying and selling of securities with the intent of profiting from short-term price movements.

Securities Analysts

Securities Analysts are professionals who evaluate and report on the potential of investments, including stocks, bonds, and other securities.

Potential Returns

The expected gain or loss from an investment, reflecting the possible outcomes of an investment's performance.