Question: Assume the expected return on the portfolio is equal to 10.00 percent, the beta for the portfolio is 2.00, the standard deviation for the portfolio

Assume the expected return on the portfolio is equal to 10.00 percent, the beta for the portfolio is 2.00, the standard deviation for the portfolio is 20 percent, and the risk-free rate of return is 2.00 percent. Based on this information what is the Treynor Ratio for the portfolio?

1) 0.01

2) 0.04

3) 0.10

4) 0.40

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