Question

In: Finance

During the year just​ ended, Anna​ Schultz's portfolio, which has a beta of 0.98​, earned a...

During the year just​ ended, Anna​ Schultz's portfolio, which has a beta of 0.98​, earned a return of 8.7%.

The​ risk-free rate is currently 4.2%​, and the return on the market portfolio during the year just ended was 9.4%.

A. Calculate​ Treynor's measure for​ Anna's portfolio for the year just ended.

b. Compare the performance of​ Anna's portfolio found in part a to that of Stacey​ Quant's portfolio, which has a​ Treynor's measure of 1.36%. Which portfolio performed​ better? Explain.

c. Calculate​ Treynor's measure for the market portfolio for the year just ended.

d. Use your findings in parts a and c to discuss the performance of​ Anna's portfolio relative to the market during the year just ended.

a.The​ Treynor's measure for​ Anna's portfolio is ___​%. (Round to two decimal​ places.)

  1. ​Anna's portfolio_____

1.outperformed

2.underperformed   Stacy's with a TM of ___

1. 4.59

2. 1.36

​% versus one of 1.36​%. (Select from the​ drop-down menus.)

c.  The​ Treynor's measure for the market portfolio is ___​%. (Round to two decimal​ places.)

d.  The market_____

▼

1.outperformed

2. underperformed

​Anna's portfolio; its TM was______

▼

1. 4.59

2. 1.36

3. 5.20

​%, compared to

▼

1. 4.59

2. 1.36

3. 5.20

​% for her portfolio.  ​(Select from the​ drop-down menus.)

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 7 months ago
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