Allisons portfolio has an expected return of 14 and a beta


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.

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Financial Management: Allisons portfolio has an expected return of 14 and a beta
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