Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider a portfolio with an expected return of 14% and a variance of 81%. The risk free rate of return is 5%. The beta associated
Consider a portfolio with an expected return of 14% and a variance of 81%. The risk free rate of return is 5%. The beta associated with the portfolio is 1.2. What is the Treynor ratio of this portfolio (correct to one decimal place)?
A. | 2.6 | |
B. | 2.4 | |
C. | 7.5 | |
D. | 5.5 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started