A portfolio has an average return of 10.9%, a standard deviation of 9.6%, and a beta of .63. The risk-free rate is 1.8%. What is the Treynor ratio?
A).092
B).106
C).144
D).164
E).283

Name: A portfolio has an average return of 10.9%, a standard deviation of 9.6%, and a beta of .63. The risk-free rate is 1.8%. What is the Treynor ratio? A).092 B).106 C).144 D).164 E).283
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Quizplus · Accepted Answer

The Treynor ratio is calculated as (Portfolio Return - Risk-Free Rate) / Beta. Here, it is (10.9% - 1.8%) / 0.63 = 0.144.

A Portfolio Has an Average Return of 10