The table below shows selected financial data for the Turtle Income fund,the Hare Growth fund,the market portfolio and the risk free asset.Calculate the Treynor Index for each of the funds.How do the Treynor Index measures for the two funds compare to the Market's Treynor Index value?

A) Turtle

Question

The table below shows selected financial data for the Turtle Income fund,the Hare Growth fund,the market portfolio and the risk free asset.Calculate the Treynor Index for each of the funds.How do the Treynor Index measures for the two funds compare to the Market's Treynor Index value?

A) Turtle < Hare < Market 
B) Turtle < Hare = Market 
C) Hare < Turtle < Market 
D) Hare < Turtle = Market 
E) Market < Hare < Turtle

Quizplus · Accepted Answer

Treynor Index = 11ea7fdb_fc0c_2099_a768_23f0c649a931_TB2902_11 Treynor Index for the market = 11ea7fdb_fc0c_47aa_a768_8bd025cd4f10_TB2902_11 = 0.07
Treynor Index for Hare = 11ea7fdb_fc0c_47ab_a768_87ce9484c391_TB2902_11 = 0.057
Treynor Index for Turtle = 11ea7fdb_fc0c_47ac_a768_df8e1de0cf88_TB2902_11 = 0.07
Turtle's Treynor Index is equal to the market's. However, Hare's is less than the market's.

The Table Below Shows Selected Financial Data for the Turtle