USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 29

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The data presented below has been collected at this point in time.

-Refer to Exhibit 18.5. Compute the Treynor Measure for the ZZZ fund.

• A) 6.98
• B) 2.35
• C) 2.53
• D) 3.86
• E) 1.72

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Definitions:

Expected Growth Rate

The annual rate at which an investment, earnings, or value is expected to grow.

Annual Dividend

Annual dividend is the total amount of dividend payments a shareholder receives from a company in one year.

Zero Growth Stock

A stock in a company which is not expected to experience any growth in dividends or earnings and typically pays a high dividend yield.

Required Rate

The minimum return that investors expect or the company estimates it needs to generate from a capital investment or project to consider it viable.