1. Using the data in the Thompson Asset Management Excel file (available on myCourses), prepare a short report evaluating the performance of the ProIndex fund during years 2009-2013. Your evaluation should be based on a comparison with the S&P 500 index (the file also includes data on the index during the same period).

You should use some (but, most likely, not all) of the performance measures in Exhibit 4. Comment on which performance measure(s), in your opinion, is the most appropriate for different types of investors (for example, you could take two examples: a university endowment with a diversified portfolio managed by multiple firms; and an individual who is interested in entrusting their entire portfolio to TAM.) Compute ProIndexs beta. Given ProIndexs investing style, do you think a single beta estimate does a good job of summarizing the funds risk profile? riskless rate: 0.25%

Exhibit 2: ProIndex and Market Return Data
Year	ProIndex	S&P 500
2009	56.48%	23.45%
2010	14.16%	12.78%
2011	11.43%	0.00%
2012	17.20%	13.41%
2013	72.78%	29.60%
Cumulative, 2009-2013	303.06%	104.63%
Daily Standard Deviation	1.91%	1.23%
Annualized Standard Deviation	30.32%	19.47%

EXHIBIT 4:

Sharpe Ratio	Measure of a portfolio's return per unit of risk. Calculated as the (Portfolio Return - Risk-free Rate) / (Standard Deviation of Returns).
Treynor Ratio	Measure of a portfolio's return per unit of risk. Calculated as the (Portfolio Return - Risk-free Rate) / (Portfolio Beta).
Jensen's Alpha	A measure of a portfolio's return above its required return based on the Capital Asset Pricing Model. Calculated as (Portfolio Return - Risk-free Rate) - Portfolio Beta x (Market Return - Risk-free Rate).
Daily Tracking Error	Excess return of the portfolio over a benchmark portfolio. Calculated as the standard deviation of the (Daily Portfolio Return - Daily Benchmark Return).
Annualized Tracking Error	Tracking error expressed in annual terms. Daily tracking errors are converted to annual tracking errors by multiplying by the square root of 252.
Information Ratio	Measure of a portfolio's return per unit of risk. Calculated as the (Annual Portfolio Return - Annual Benchmark Return) / (Annual Tracking Error).