A portfolio has an average return of 9.7 percent,a standard deviation of 8.6 percent,and a beta of 0.72.The risk-free rate is 2.1 percent.What is the Treynor ratio?
A) 0.098
B) 0.106
C) 0.121
D) 0.636
E) 0.884

Name: A portfolio has an average return of 9.7 percent,a standard deviation of 8.6 percent,and a beta of 0.72.The risk-free rate is 2.1 percent.What is the Treynor ratio? A) 0.098 B) 0.106 C) 0.121 D) 0.636 E) 0.884
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Quizplus · Accepted Answer

Treynor ratio = (0.097 − 0.021) / 0.72 = 0.106

A Portfolio Has an Average Return of 9