Here are data on five mutual funds:
What is the reward-to-variability ratio and the ranking if the risk-free rate is 3%?
Answer to relevant QuestionsAssume your preference function P is P = C1 + C2 + C1C2. Plot the location of all points with P = 50, P = 100. Assume that the average variance of return for an individual security is 50 and that the average covariance is 10. What is the expected variance of an equally weighted port folio of 5, 10, 20, 50, and 100 securities? In Problem 5, assume a riskless rate of 10%. What is the optimal investment? In Problem 5 For the two securities shown, plot all combinations of the two securities in space. Assume p = 1, -1, 0. For each correlation ...For the data in Problem 1, what is the Treynor measure and ranking? In Problem 1 Assume that a brokerage firm concentrates on a few closely related industries. It has produced a set of estimates of earnings for 1985 and subsequently recorded the earnings that actually occurred. These data are given ...
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