Question: The? risk-free rate is currently 7.9 ?%. Use the data in the accompanying table for the Fio? family's portfolio and the market portfolio during the
The? risk-free rate is currently 7.9 ?%. Use the data in the accompanying table for the Fio? family's portfolio and the market portfolio during the year just ended to answer the questions that follow.???(Click on the icon located on the? top-right corner of the data table below in order to copy its contents into a? spreadsheet.) Data Item ?Fios' Portfolio Market Portfolio Rate of return 12.9 ?% 11.4 ?% Standard deviation of return 12.7 ?% 9.7 ?% Beta 1.31 1.00 a. Calculate? Sharpe's measure for the portfolio and the market. Compare the two? measures, and assess the performance of the? Fios' portfolio during the year just ended. b. Calculate? Treynor's measure for the portfolio and the market. Compare the? two, and assess the performance of the? Fios' portfolio during the year just ended. c. Calculate? Jensen's measure? (Jensen's alpha). Use it to assess the performance of the? Fios' portfolio during the year just ended. d. On the basis of your findings in parts ?a, b, and ?c, assess the performance of the? Fios' portfolio during the year just ended.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
