An investor was tracking SBI and HDFC mutual funds whose return and beta are as given below:

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Return on the market portfolio is 11%, while the risk-free return is 8%. Assume standard Deviation of the market to be 7%.

a. Compute the Jensen index for each of the funds and comment on which one is better.
b. Compute the Treynor index for each of the funds and comment on which one is better.

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Applied Corporate Finance

ISBN: 978-1118808931

4th edition

Authors: Aswath Damodaran

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Posted Date: Apr 07, 2020 12:56 PM

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An investor was tracking SBI and HDFC mutual funds whose return and beta are as given below:

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a 1 Portfolio SBI 2 Portfolio HDFC Ans Jenson Index of portfolio SBI is ... View the full answer

Applied Corporate Finance

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