To Calculate Treynor's Reward-To-Volatility Ratio, the Analyst Does Not Need

question 36

Multiple Choice

To calculate Treynor's reward-to-volatility ratio, the analyst does not need the

• A) average riskfree yield.
• B) beta for the portfolio.
• C) average portfolio excess return.
• D) market return standard deviations.

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Definitions:

Entrepreneurs

Individuals who start, organize, and manage their own businesses, taking on financial risks in the hope of profit.

Small Business Owners

Individuals who own and operate companies that are typically defined by their small size in terms of employees and revenue.

General Public

This term refers to the ordinary people in society at large, distinct from the members of a particular group, profession, or government.

Moderate Risk

A level of danger or potential for loss that is considered to be within a reasonable or manageable range.