Mr. Aggarwal has been managing the portfolios of a large mutual fund for the last two years. The individual details are as follows: Portfolio A Actual return earned = 50% Standard deviation of returns = 25% Return generated by the market = 30% Risk-free rate of return = 10% Portfolio Beta = 1.40 Portfolio B Actual Return earned = 45% Standard deviation of returns = 28% Return generated by the market = 30% Risk-free rate of return = 10% Portfolio Beta = 2 .

Based on the above information, answer the following. 

a. What is the risk premium earned/available on Portfolio A & B? 

b. What is the Sharpe Ratio and the Treynor's Ratio for the two portfolios? 

C. Based on your calculations in (a) & (b) above which do you think is a better Portfolio & why?

Answer rating: 100% (QA)

Portfolio Performance Analysis Lets analyze Mr Aggarwals portfolios based on the given information a ... View the full answer