s not well-diversified. c. A measure of market portfolio performance is essenti

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 5LO
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An investor who uses only the Treynor ratio to evaluate the performance of a mutual fund is most likely to conclude:

 

a. Total risk is more important than systematic risk

b. The fund is not well-diversified.

c. A measure of market portfolio performance is essential to evaluate the fund

d. The beta of the fund captures the relevant risk of the fund.

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