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A portfolio has a total return of 17%, a standard deviation of 40%, and a beta of 2. The market rate of return is

A portfolio has a total return of 17%, a standard deviation of 40%, and a beta of 2. The market rate of return is 11%, the standard deviation is 10%, and the market portfolio's Treynor measure is 0.08. What is the value of the Treynor measure of this portfolio? What is the information ratio of this portfolio?

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SOLUTION To calculate the Treynor measure of the portfolio we can use the formula Treynor measure portfolio return riskfree rate beta Since the riskfr... blur-text-image

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