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I have the below answer to a question on my study guide. My only question is why is Treynors Measure 5 when I keep getting
I have the below answer to a question on my study guide. My only question is why is Treynors Measure 5 when I keep getting .05 in my calculations. Is it measured in a percentage and that is just the final %?
Q4. You know portfolio p has a standard deviation of 12% and beta of 1.5. The market expected return is 7% and the risk-free rate is 2%. What is the company's Treynor measure? Answer: By CAPM, E(r)=2%+1.5(7%2%)=9.5%. Treynor's measure is T=1.59.5%2%=5Step by Step Solution
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