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T Mobile has an expected return of 16.9%, a beta of 1.4 and a standard deviation...

T Mobile has an expected return of 16.9%, a beta of 1.4 and a standard deviation of 21.6%. What is T Mobile's Treynor Ratio if the risk-free rate is 2.1%?

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Answer #1

Treynor ratio = (Portfolio return - Risk free rate) / Beta

= (16.9% - 2.1%)/ 1.4

= 0.1057

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