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You are investigating a potential investment advisor whose past investments have a standard deviation = 2 7 % while the market has a standard deviation

You are investigating a potential investment advisor whose past investments have a standard deviation

= 27 %

while the market has a standard deviation

= 12 % .

The correlation between the investments and the market is

0.51

and the risk

-

free rate

= 4.4 % .

What is the Treynor Ratio of this advisor if the investment had a return of

23 %

while the market had a return of

14 % ?

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