USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The data presented below has been collected at this point in time.

-Refer to Exhibit 18.4. Compute the Treynor Measure for the CCC fund.
A) 5.43
B) 2.74
C) 2.19
D) 2.00
E) 1.65

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The data presented below has been collected at this point in time.
 
-Refer to Exhibit 18.4. Compute the Treynor Measure for the CCC fund.
A) 5.43 
B) 2.74 
C) 2.19 
D) 2.00 
E) 1.65

Quizplus · Accepted Answer

The Treynor Measure is calculated as the ratio of the excess return of the fund to the beta of the fund. The excess return is the return of the fund minus the risk-free rate. The beta of the fund is a measure of the volatility of the fund relative to the market.The CCC fund has an excess return of 5.43% and a beta of 1.00. Therefore, the Treynor Measure for the CCC fund is 5.43%.