The U.S. Treasury bill is yielding 3.0% and the market has an expected return of 11.6%. What is the Treynor ratio of a correctly-valued portfolio that has a beta of 1.02 and a s…

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asked Nov 17, 2022 97.7k views

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Danyl Semmache · Answer 1 · 2022-11-21T12:40:54+0000

Answer: hope this helps

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.

Step-by-step explanation:

The U.S. Treasury bill is yielding 3.0% and the market has an expected return of 11.6%. What is the Treynor ratio of a correctly-valued portfolio that has a beta of 1.02 and a s…

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