The Treynor measure, also known as the Treynor ratio, is a performance metric that evaluates the risk-adjusted excess return of a portfolio. It is calculated by dividing the portfolio's excess return over the risk-free rate by its beta coefficient. In this case, the Treynor measure (Tp) is calculated using the formula:

$Tp = \frac{E(Rp) - RF}{\beta_p}$

Where:

• $E(Rp)$ is the expected return of the portfolio, which is 9%.
• $RF$ is the risk-free rate, which is 3%.
• $\beta_p$ is the beta of the portfolio, which is 0.3.

Plugging in the values from the question, we get:

$Tp = \frac{9\% - 3\%}{0.3} = \frac{6\%}{0.3} = 20\%$

Thus, the Treynor measure of portfolio LCM is 0.20, which corresponds to option C. This measure indicates that for every unit of market risk taken on by the portfolio, it generates a return of 20% above the risk-free rate.