Allison's portfolio has an expected return of 14% and a beta of 1.37.Brianna's portfolio has an expected rate of return of 11% and a beta of 1.The risk-free rate is 3%.According to the Treynor measure,
A) Allison has the better portfolio.
B) Brianna has the better portfolio.
C) The portfolio's are equally desirable.
D) The answer depends on Allsison and Brianna's risk tolerance.
Correct Answer:
Verified
Q41: Tim purchased a stock ten months ago
Q49: Sharpe's measure, Treynor's measure, and Jensen's measure
Q56: Sharpe's measure of portfolio performance adjusts for
Q66: A constant-ratio plan requires an investor to
Q68: Which of the following measures is based
Q71: The process of selling certain issues in
Q74: The Witney Growth Fund, a no-load mutual
Q78: Phil has a portfolio with a 13.2%
Q82: Dollar cost averaging is a formula plan
Q100: Investors who use formula plans believe that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents