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Chee​ Chew's portfolio has a beta of 1.29 and earned a return of 13.8 % during...

Chee​ Chew's portfolio has a beta of 1.29 and earned a return of 13.8 % during the year just ended. The​ risk-free rate is currently 4.7 % . The return on the market portfolio during the year just ended was 10.7 % .

a.Calculate​ Jensen's measure​ (Jensen's alpha) for​ Chee's portfolio for the year just ended.

b.Compare the performance of​ Chee's portfolio found in part a to that of Carri​ Uhl's portfolio, which has a​ Jensen's measure of negative 0.17 . Which portfolio performed​ better? Explain.

c.Use your findings in part a to discuss the performance of​ Chee's portfolio during the period just ended.

a.The​ Jensen's measure​ (Jensen's alpha) for​ Chee's portfolio is nothing . ​(Round to two decimal​ places.)

b.​ Chee's portfolio, with a JM of ▼ 1.36 -0.17 ​, outperformed​ Carri's portfolio, with a JM of negative 0.17 . A ▼ positive negative JM indicates that the ▼ actual required return exceeds the ▼ actual required return. A ▼ positive negative return on a portfolio means that it did not earn its ▼ actual required return.  

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jeff jeffy answered 1 year ago
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