Question: The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Fio familys portfolio and the market portfolio during the year

The risk-free rate is currently 8.1%. 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.

a. Calculate Sharpe€™s measure for the portfolio and the market. Compare the 2 measures, and assess the performance of the Fios€™s portfolio during the year just ended.
b. Calculate Treynor€™s measure for the portfolio and the market. Compare the 2 measures, and assess the performance of the Fios€™s portfolio during the year just ended.
c. Calculate Jensen€™s measure (Jensen€™s alpha). Use it to assess the performance of the Fios€™s 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€™s portfolio during the year just ended.

Data Item Rate of return Standard deviation of return Beta Fios's Portfolio 12.8% 13.5% 1.10 Market Portfolio 11.2% 98% 1.00

Step by Step Solution

★★★★★

3.34 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The Fio familys portfolio with a higher SM outperformed the market b The Fio familys portfoli... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

446-B-F-F-M (6209).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Use the data provided to answer the questions that follow relating to Newtech Ltd for 2019: Abbreviated Statement of Financial Position: Assets 2019 2018 Non Current/Fixed 4 200 000 3 000 000...

In February 2014 the risk free rate was 4.75 percent, the market risk premium was 6 percent and the beta for Twitter stock was 1.31. What is the expected return that was consistent with the...

Use the accompanying graph to answer the questions that follow. a. Suppose this monopolist is unregulated.(1) What price will the firm charge to maximize its profits?(2) What is the level of consumer...

P13.16 The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Fio familys portfolio and the market portfolio during the year just ended to answer the questions that...

The risk-free rate is currently 8.1%. 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....

The risk-free rate is currently 8.3%. 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....

The risk-free rate is currently 7.7%. 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....

Dropdowns: A. Superior, Inferior C. Outperforms, underperforms D. outperformed, underperformed The risk-free rate is currently 8.3%. Use the data in the accompanying table for the Fio family's...

The risk-free rate is currently 8.5%. 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....

Using the POQ method of ordering, calculate the total cost of carrying and ordering inventory using average inventory. Week 3 4 6 Net 275 300 328 291 275 315 Order (1) Ending Inventory (1) Average...

On 1/2/21, Casey bought a 40% ownership interest in a partnership in exchange for $100,000 cash plus land that had an FMV of $800,000, which Casey had $200,000 of basis in. This partnership is 100%...

Question 2 3 Find the average rate o f change o f g ( x ) = 5 x - 4 - 4 , - 2 4

The following information for Minton Company is available on June 30, 2011, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for Minton Company for...

2.)Find an app designed to support a business process. What is the business process? How does the app propose to improve it?

Find an app that uses device capabilities to provide a product that previously couldnt exist. Explain what makes this app important or innovative.

An investment requires 20,000 today and produces yearly cash flow of 1200 in perpetuity. Cash flow is expected to grow at 2% a year. What is the rate of return of this investment?

Which manager is most likely to get caught in a value trap? A. Furlings B. Asgard C. Tokra

The chart shows the number of global corporate bond issues for which Standard & Poor's issued ratings upgrades or downgrades every year from 1981 to 2014. a. What is the trend in the number of...

You are considering the purchase of a $1,000 par value bond with an 6.5% coupon rate (with interest paid semiannually) that matures in 12 years. If the bond is priced to provide a required return of...

You notice in the WSJ a bond that is currently selling in the market for $1,070 with a coupon of 11% and a 20-year maturity. Using annual compounding, calculate the promised yield on this bond.

A packet 10111011 is to be transmitted using the standard CRC method. The generator polynomial si ^3 + 1. a) Determine the frame that is actually transmitted. b) Suppose the third bit from the left...

identify if there appears to be a positive, negative, or curvilinear relationship: As IQ scores increase, achievement scores increase. ___________________________ 2. Higher scores on an anxiety scale...

Windows 1 0 & File Management Practice From the Settings window, change the resolution of the screen to 1 1 5 2 8 6 4 and change the scaling to 1 2 5 % .