Question: When the actively managed portfolio is mixed with a passive market index portfolio, what is the best performance measure to use? a. Treynor measure b.

When the actively managed portfolio is mixed with a passive market index portfolio, what is the best performance measure to use?

a.

Treynor measure
b.

Alpha
c.

Information ratio
d.

M2 measure

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

If a stock is considered to be mixed with the rest of an investor's portfolio, currently composed solely of holdings in the market index fund, then the appropriate performance measure is a. alpha b....

Q:

Question 5 (a) The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfolio Average Return 18% 14% Standard Deviation of Returns...

Q:

(b) The following data are available relating to the performance of Seminole Fund and the market portfolio: Average Return Standard Deviation of Returns Seminole 18% 30% 1.4 4.0% Beta Residual...

Q:

You invested $1000 in a stock at the start of the year 2016. The return on your stock is 50% in year 2016; 50% in year 2017, and 33.3% in year 2018. What is the arithmetic average return per year?...

Q:

Section A: Multiple-Choice Questions [20 Questions; 40 Marks] 1. Which one of the following is not a key market risk? A. Equity price risk B. Commodity price risk C. Credit risk D. Foreign exchange...

Q:

(Questions from Lecture Note and ?Wall Street Journal? Articles) - Discussion Board Activity I need to read the following Lecture Note that I uploaded and some ?Wall Street Journal? articles, and...

Q:

(a) The investment performance measures of two portfolios X and Y are illustrated in Table 2. Use the information provided to calculate the following: Jensens alpha ( p ) index; Treynors index;...

Q:

An actively managed portfolio on Canadian energy stocks has achieved a 32% return this past year with a volatility of 48%. By comparison, the portfolios benchmark, the S&P/TSX Energy Index returned...

Q:

An actively managed portfolio on Canadian energy stocks has achieved a 32% return this past year with a volatility of 48%. By comparison, the portfolios benchmark, the S&P/TSX Energy Index returned...

Q:

(I JUST NEED HELP WITH PART E PLEASE. I HAVE SOLVED THE REST. THANKS) An actively managed portfolio on Canadian energy stocks has achieved a 32% return this past year with a volatility of 48%. By...

Q:

Jennifer is choosing between buying a condominium property and renting it. The price for the condo is $157,000. The financing terms, if the condo is purchased, are: LTV = 0.9, loan term = 30 years,...

Q:

The article "Families of Distributions for Hourly Median Power and Instantaneous Power of Received Radio Signals" (J. of Research for the National Bureau of Standards, 1963: 753-762) suggests the...

Q:

Find the volume of the cuboid shown in Fig. 1C.8. Fig. 1C.8 8 cm 10 cm 2 cm

Q:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...