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1.) Jacob has a portfolio with a 13.2% total return. The beta of his portfolio is 1.3 and the standard deviation is 14.7%. Currently, the

1.) Jacob has a portfolio with a 13.2% total return. The beta of his portfolio is 1.3 and the standard deviation is 14.7%. Currently, the risk-free rate of return is 1% and the overall market has a total return of 11%. What is the value of Treynor's measure for Jacob's portfolio?

8.36%

10.52%

11.93%

9.38%

2.) Matt and Mary are in their seventies and retired. Which one of the following sets of portfolio statistics might best suit their situation if their primary investment goal is current income with limited risk?

beta of 1.35 and a dividend yield of 4.2%

beta of 1.79 and a dividend yield of 7.1%

beta of 0.53 and a dividend yield of 5.6%

beta of 0.81, and a dividend yield of 3.3%

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