A portfolio has a variance of .04050, a beta of 1.60, and an expected return of 18.9%. What is the Treynor ratio if the expected risk-free rate is 4.5%?
A).055
B).065
C).078
D).198
E).239

Name: A portfolio has a variance of .04050, a beta of 1.60, and an expected return of 18.9%. What is the Treynor ratio if the expected risk-free rate is 4.5%? A).055 B).065 C).078 D).198 E).239
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Quizplus · Accepted Answer

The Treynor ratio is calculated as (Expected Return - Risk-Free Rate) / Beta. Here, it is (18.9% - 4.5%) / 1.60 = 0.078.

A Portfolio Has a Variance of