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.)
- 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 5 months agoRelated Solutions
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54
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