Treynor's measure of portfolio performance focuses on
A) nondiversifiable risk.
B) diversifiable risk.
C) total risk.
D) the standard deviation of the portfolio.

Question

Quizplus · Accepted Answer

Treynor's measure of portfolio performance evaluates the returns of a portfolio relative to its beta, or nondiversifiable risk, rather than its total risk or its diversifiable risk. This measure is particularly useful for comparing the performance of portfolios or funds that have different levels of market risk.

Treynor's Measure of Portfolio Performance Focuses on