Question: Your portfolio has a beta equal to 1.9. It returned 10.5% last year. The market returned 8.9%; the risk-free rate is 2.5%. Calculate Treynor's measure

Your portfolio has a beta equal to 1.9. It returned 10.5% last year. The market returned 8.9%; the risk-free rate is 2.5%. Calculate Treynor's measure for your portfolio and the market. Did you earn a better return than the market given the risk you took?

The Treynor's measure for your portfolio is __(Round to two decimal places.)

The Treynor's measure for the market is __(Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!