n NISM Certifications
V-A NISM Series V-A
Medium

The Risk-Free Return of a scheme is 7%, the beta is 1.6, and the actual return earned is 9%. What is the Treynor Ratio of this scheme?

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 1.25

    Correct answer

  2. B

    2.50

  3. C

    1.00074

  4. D

    2

Why this is the answer

\[ \text{Treynor Ratio} = \frac{\text{Return Earned} - \text{Risk-Free Return}}{\beta} \]

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

NISM Series V A - Mock Test 6 Free