A Portfolio Generates an Annual Return of 13%,a Beta of 0.7

question 40

Multiple Choice

A portfolio generates an annual return of 13%,a beta of 0.7 and a standard deviation of 17%.The market index return is 14% and has a standard deviation of 21%.What is the Treynor measure of the portfolio if the risk free rate is 5%?

• A) .1143
• B) .1233
• C) .1354
• D) .1477

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Definitions:

Sensory Corpuscles

Specialized nerve endings found in the skin that respond to light touch and pressure.

Melanocytes

Cells located in the bottom layer of the skin's epidermis that produce melanin, the pigment responsible for skin color.

Avascular

Characterized by or pertaining to tissues that do not contain blood vessels; often referring to areas where healing may be impaired due to lack of blood flow.

Epidermal Layers

The layers of the epidermis, the outermost part of the skin, responsible for skin water resistance and barrier protection.