During the year just ended, Anna Schultzs portfolio, which has a beta of 0 90, earned a return of 8 6 The risk free rate is currently 7 3 , and the return on the market portfolio during the year just ended was 9 2 a Calculate Treynors measure for Annas portfolio for the year just ended b Compare th...

a Treynors measure TM Total portfolio return Riskfree ratePortfolio ...

During the year just ended, Anna Schultzs portfolio, which has a beta of 0.90, earned a return

Question:

During the year just ended, Anna Schultz’s which has a beta of 0.90, earned a return of 8.6%. The risk-free rate is currently 7.3%, and the return on the market during the year just ended was 9.2%.
a. Calculate Treynor’s measure for Anna’s for the year just ended.
b. Compare the performance of Anna’s found in part a to that of Stacey Quant’s which has a Treynor’s measure of 1.25%. Which performed better? Explain.
c. Calculate Treynor’s measure for the market for the year just ended.
d. Use your findings in parts a and c to discuss the performance of Anna’s relative to the market during the year just ended.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...