Question

Compute the Treynor's ratio, if the risk-free return is 10% and beta of the fund 0.90. The return from the fund is 13%.

A. 0.062

B. 0.045

C. 0.033

D. 0.520

Answer 1

Answer:

I am unable to give the answer but try this:

The Treynor ratio formula is calculated by dividing the difference between the average portfolio return and the average return of the risk-free rate by the beta of the portfolio. Ri represents the actual return of the stock or investment.

Explanation:

Hope this helps you get your answer

Answer 2

Answer:

The ans by me is 0.70

.

Explanation:

I tried my best u can select the option nearest to it like u may select option - A. 0.062