You Want to Evaluate Three Mutual Funds Using the Treynor

question 17

Multiple Choice

You want to evaluate three mutual funds using the Treynor measure for performance evaluation. The risk-free return during the sample period is 6%. The average returns, standard deviations, and betas for the three funds are given below, in addition to information regarding the S&P 500 Index.

The fund with the highest Treynor measure is

• A) Fund A.
• B) Fund B.
• C) Fund C.
• D) Funds A and B (tied for highest).
• E) Funds A and C (tied for highest).

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A structured approach to problem-solving or project management, focusing on Research, Analysis, and Presentation.

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Individuals within an organization who have the skills, attributes, and the potential to assume leadership roles in the future.

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