A Portfolio Generates an Annual Return of 16%,a Beta of 1.2

question 77

Multiple Choice

A portfolio generates an annual return of 16%,a beta of 1.2 and a standard deviation of 19%.The market index return is 12% and has a standard deviation of 16%.What is the Treynor measure of the portfolio if the risk free rate is 6%?

• A) .0833
• B) .1083
• C) .1114
• D) .1163

---

Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence and can have its cost spread out over its useful life for accounting purposes.

Proceeds

The amount of money received from a transaction, sale, or event.