What is Treynor Measure



0
153. Treynor measure is _______________
a. Rp – Rf / Beta
b. Rp – Rf / S.D
c. Rp + Rf / Beta
d. Rf – Rp / S.D
Solution (C)
As per NISM workbook, if is Rp -Rf / Beta i.e. solution should be a and not c. Please guide as these terms I've come across for the first time.

1 Answer(s)


0

Yes, The answer should be "a" = Portfolio return - risk free return/ Beta.
I shall ask my academics team to verify the same. Thanks for highlighting.