The Treynor-Black model
A)considers both macroeconomic and microeconomic risks.
B)considers security selection only.
C)is nearly impossible to implement.
D)considers both macroeconomic and microeconomic risks and is nearly impossible to implement.

Question

Quizplus · Accepted Answer

The Treynor-Black model considers both macroeconomic and microeconomic risks, making it a comprehensive model that takes into account various factors that can affect a portfolio's performance. It is not impossible to implement, although it may require a significant amount of data and analysis. Choice B is not correct as the model considers both security selection and other factors. Choice C is also not correct as the model is implementable, although it may be complex. Choice D is partly correct, but it is not true that the model is nearly impossible to implement.

The Treynor-Black Model