Question: 1 pts Question 4 Suppose portfolio A has average return 18%, standard deviation 30%, and market beta 2. If the risk-free rate is 5% and

1 pts Question 4 Suppose portfolio A has average return 18%, standard deviation 30%, and market beta 2. If the risk-free rate is 5% and the market average return is 15%, what is the Treynor measure for portfolio A? Question 6 Suppose portfolio C has average return 20% and standard deviation 25%, S&P500 has average return 15% and standard deviation 20%. If the risk-free rate is 5%, what is the Sharpe ratio for portfolio C

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Suppose portfolio A has average return 18%, standard deviation 30%, and market beta 2. If the risk-free rate is 5% and the market average return 15%, what is the Treynor measure for portfolio A?

1 pts Question 5 Suppose portfolio B has average return 25% and standard deviation 35%, S&P500 has average return 15% and standard deviation 20%. If the risk-free rate is 5%, what is the M2 measure...

The following data are available relating to the performance of Seminole Fund and the market portfolio: Market Portfolio 14% Seminole Average return 18% Standard deviations of 30% returns Beta 1.4...

Assume Single Index Model applies to multiple choice questions 18, 19 and 20. Suppose that Market Index return has standard deviation of 20% and that the risk-free rate is 3%. Further, suppose that...

Stock Y has a beta of 1.05 and an expected return of 15.55 percent. Stock Z has a beta of .90 and an expected return of 6 percent. If the risk-free rate is 4.0 percent and the market risk premium is...

Assume that you recently graduated and landed a job as a financial planner with Cicero Services, an investment advisory company. Your first client recently inherited some assets and has asked you to...

You are given the following information concerning a stock and the market: Returns Year Market Stock 2008 17 % 29 % 2009 13 13 2010 20 3 2011 8 16 2012 35 16 2013 15 21 1. Calculate the average...

The optimal risky portfolio has 12% expected return, 18% standard deviation, and the risk-free rate is 3%. Which one of the following portfolios is not on the Capital Market Line (CML)? a. Portfolio...

Assume that in the economy there are three assets: a risk-free asset and stocks of Firm A and Firm B. The return of the risk-free asset is 1%. Assume that the CAPM holds and the expected return and...

{gm points]. Are the following statements true or false? Provide a short justication for your answer. [You are evaluated on your justication.) Remember that a statement is false if any part of the...

Swift Company has the following obligations at December 31: (a) A note payable for $10,000 due in 18 months; (b) Unearned revenue of $12,500; (c) Interest payable of $15,000; (d) Accounts payable of...

The following character encoding is used in a data link protocol: A: 01000111; B: 11100011; FLAG: 01111110; ESC: 11100000 Show the bit sequence transmitted (in binary) for the four-character frame: A...

what central issue led to the development of eurocurrency market? multiple choice

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.