Q692
An average return of portfolio divided by its coefficient of beta is classified as
A.
Sharpe's reward to variability ratio
B.
treynor's reward to volatility ratio
AnswerC.
Jensen's alpha
D.
treynor's variance to volatility ratio
Answer: Option B
Solution
Answer: Option B
Solution:
An average return of portfolio divided by its coefficient of beta is classified as treynor's reward to volatility ratio. The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio.