According to the treynor measure

Assignment Help Financial Management

Reference no: EM131583327

Allison's portfolio has an expected return of 14% and a beta of 1.37. Brianna's portfolio has an expected rate of return of 11% and a beta of 1. The risk-free rate is 3%. According to the Treynor measure, (please show work)

A) Allison has the better portfolio.

B) Brianna has the better portfolio.

C) the portfolio's are equally desirable.

D) the answer depends on Allison and Brianna's risk tolerance.

Reference no: EM131583327

Questions Cloud

Calculate the times interest earned ratio : Analyzing coverage? ratios-Calculate the times interest earned ratio for each of the years for which you have data.

If the company now splits its stock : If the company now splits its stock 3-for-1,

What nominal daily rate of return has to be realized : If the company wants to make an effective 25% per year, compounded continuously, what nominal daily rate of return has to be realized?

Compute the monthly lease payment in perfect market : compute the monthly lease payment in a perfect market for the following? leases:

According to the treynor measure : Allison's portfolio has an expected return of 14% and a beta of 1.37. The risk-free rate is 3%. According to the Treynor measure,

Calculate and draw time line specifying the cash flows : Calculate and draw a time line specifying the cash flows the investor would receive from the bond assume she holds it to maturity.

Preemptive rights means : "Preemptive rights" means that existing shareholders can prevent management from issuing additional common stock.

Characterizes the lowering of trade and investment barriers : Which of the following characterizes the lowering of trade and investment barriers?

Credit card company decides to study the frequency : A credit card company decides to study the frequency with which its cardholders charge for items from a certain chain of retail stores.

User Account

All Pages