Ask Question
13 December, 14:59

The U. S. Treasury bill is yielding 3.0 percent and the market has an expected return of 11.6 percent. What is the Treynor ratio of a portfolio that has a beta of 1.02, and a standard deviation of 12.2 percent?

+4
Answers (1)
  1. 13 December, 15:13
    0
    Treynor ratio = Market return - Risk-free rate

    Portfolio beta

    = 11.6 - 3.0

    1.02

    = 8.43%

    Explanation:

    Treynor ratio is the ratio of risk-premium to portfolio beta. Risk-premium is the excess of market return over risk-free rate, Treynor ratio is used for measuring the performance of a portfolio.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The U. S. Treasury bill is yielding 3.0 percent and the market has an expected return of 11.6 percent. What is the Treynor ratio of a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers