1) Prove or disprove that average Treynor's measure is equal to the market's one at each point of time among all the market participants. (This is cross-section at one point of time).

2) Prove or disprove that average Treynor's measure is equal to the market's one over time if a manager has no abilities and chooses stocks randomly. (This is time-series for one manager).

Answer rating: 100% (QA)

Treynors Measure and Market Performance Heres a breakdown of why the average Treynors measure differs from the markets Treynors measure in the two scenarios 1 CrossSection at One Point in Time All Mar... View the full answer