The Treynor-Black model is a model that shows how an investment manager can use security analysis and statistics to construct
A) a market portfolio.
B) a passive portfolio.
C) an active portfolio.
D) an index portfolio.
E) a balanced portfolio.

Question

Quizplus · Accepted Answer

The Treynor-Black model is designed to help investment managers construct an active portfolio by combining security analysis (for selecting mispriced securities) with the market portfolio, aiming to achieve better returns than the market portfolio alone.

The Treynor-Black Model Is a Model That Shows How an Investment