USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the data presented below on three mutual funds and the market.

-Refer to Exhibit 18.3. Compute the Treynor Measure for the CCC fund.
A) 14.7
B) 15.3
C) 19.1
D) 17.0
E) 12.7

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the data presented below on three mutual funds and the market.
 
-Refer to Exhibit 18.3. Compute the Treynor Measure for the CCC fund.
A) 14.7 
B) 15.3 
C) 19.1 
D) 17.0 
E) 12.7

Quizplus · Accepted Answer

The Treynor Measure is calculated as (Rp - Rf) / Beta, where Rp is the portfolio return, Rf is the risk-free rate, and Beta is the portfolio beta. From Exhibit 18.3, we have:Rp = 15%Rf = 5%Beta = 1.0Therefore, the Treynor Measure for the CCC fund is (15% - 5%) / 1.0 = 10%.