Suppose you have a portion that moves twice as much as the market but has averaged only 75% of the market’s return on average over the past 15 years. The market return has averaged 13% over those years, while the risk-free rate has averaged 2%. Given this, what is the Treynor Ratio of the portfolio? 5.00 4.88 3.48 3.88
Suppose you have a portion that moves twice as much as the market but has averaged only 75% of the market’s return on average over the past 15 years. The market return has averaged 13% over those years, while the risk-free rate has averaged 2%. Given this, what is the Treynor Ratio of the portfolio? 5.00 4.88 3.48 3.88
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Question Al
Suppose you have a portion that moves twice as much as the market but has averaged only 75% of the market’s return on average over the past 15 years. The market return has averaged 13% over those years, while the risk-free rate has averaged 2%. Given this, what is the Treynor Ratio of the portfolio?
5.00
4.88
3.48
3.88
Full explain this question very fast solution sent me step by step
Don't ignore any part all part work u
Text typing work only not allow paper work
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education