Question: The risk-free rate is 2% and the expected return on the market is 9%. Lexington Fund has expected return of 14%, standard deviation of 32%

The risk-free rate is 2% and the expected return on the market is 9%. Lexington Fund has expected return of 14%, standard deviation of 32% and beta of 1.7. What is the Treynor ratio of the Lexington Fund?

4.12

7.06

4.86

8.44

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