Consider now a market where three funds can be traded, and you want to understand which...
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Consider now a market where three funds can be traded, and you want to understand which is the best investment for you, based on all the performance measurement tools learned in class. The numbers are: Fund 1 Fund 2 Fund 3 Index Risk-free . 10.50% 16.50% 35.50% 15.00% 1.25% 16.50% 23.50% 32.00% 18.50% Beta 0.10 1.10 0.50 Tracking Error 18.00% 21.00% 22.50% Write the solution in Section 2 of the excel and answer the following questions as well: • Which fund(s) outperform the benchmark (index)? Which portfolio offers the highest compensation for risk? Which fund has the most consistent performance over time? Consider now a market where three funds can be traded, and you want to understand which is the best investment for you, based on all the performance measurement tools learned in class. The numbers are: Fund 1 Fund 2 Fund 3 Index Risk-free . 10.50% 16.50% 35.50% 15.00% 1.25% 16.50% 23.50% 32.00% 18.50% Beta 0.10 1.10 0.50 Tracking Error 18.00% 21.00% 22.50% Write the solution in Section 2 of the excel and answer the following questions as well: • Which fund(s) outperform the benchmark (index)? Which portfolio offers the highest compensation for risk? Which fund has the most consistent performance over time?
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Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Posted Date:
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