Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

abc, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1%

abc, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the Treynor measure of abc, Inc.?

a. 1.6

b. 0.11

c. 0.1

d. 0.6

e. 0.48

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Core Principles and Applications

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

3rd edition

978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200

Students also viewed these Finance questions

Question

What are the strengths and weaknesses of arguments by analogy?

Answered: 1 week ago