Question: Your portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk-free rate is 6%. Calculate Treynors measure

Your has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk-free rate is 6%. Calculate Treynor’s measure for your and the market. Did you earn a better return than the market given the risk you took?

Step by Step Solution

★★★★★

3.35 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Treynors measure for the portfolio ... 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 (6205).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

A stock has a beta equal to 1.0. Is the standard deviation of the stock equal to the standard deviation of the market?

Portfolio has a beta of 2.0. It is currently worth $500,000 and index stands at 1000. The risk-free rate is 12% per annum. The dividend yield on both the portfolio and the index is 6%. What is the...

The Swiss risk free rate is 7.15%. If the Swiss national market return has a mean of 11% and a standard deviation was 24.4%, what is the ex-post return/risk performance of the market?

Your portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk-free rate is 2%. Calculate Treynor's measure for your portfolio and the market. Did you earn a...

John Reardon purchased 100 shares of Tomco Corporation in December 2013 at a total cost of $1,762. He held the shares for 15 months and then sold them, netting $2,500. During the period he held the...

Your portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk-free rate is 6%. Calculate Treynors measure for your portfolio and the market. Did you earn a...

P13.12 Your portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk-free rate is 6%. Calculate Treynors measure for your portfolio and the market. Did you earn...

Your portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10% the risk-free rate is 2%. Calculate Treynor's measure for your portfolio and the market. Did you earn a...

4. Your portfolio has a beta equal to 1.3. It returned 2% last year. The market returned 10\%; the risk-free rate is 1%. Calculate Treynor's measure and the market. Did you earn a better return than...

12, Cody's portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk o. Calculate Treynor measure for her portfolio and the market. Did she earn a return bt than...

Given the function f(x) =1 0 x sin x x 2 (a) Sketch the graph of f(x), and then extend the sketch so that it becomes the graph of an odd function. (b) Find the half range Fourier sine series of...

A movie theatre charges Sh. 80 for each adult admission and Sh. 50 for each child. One Saturday, 525 tickets were sold, bringing in a total of 32,550. How many of each type of ticket were sold?

Contributing to which of the following will give you an immediate tax benefit? Roth IRA Reguty broterage account Savings Account Traditionat IteA

Rao Corporation has a target capital structure of 60 per cent equity and 40 per cent debt. Its cost of equity is 18 per cent and its pre-tax cost of debt is 13 per cent. If the relevant tax rate is...

Since he was young, Mark has been working at his familys business house, which has to do with growing and selling Eastern Australia Canola. As he was just named president of the business, he decides...

Akasuki works for an investment firm in Japan. Her client asks her to buy a Nikkei 225 VI Futures December (each point is equal to 250,000 yen) at 25 points and latter asks her to sell it for 30...

A company is projected to generate free cash flows of $471 million next year, growing at a 4.3% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.9%. The...

Earleton Manufacturing Company has $2 bilion in sales and 5400,000,000 in fixed assets. Currently, the company's fixed ascets are operating at 65 ts of capacity. The data has been collected in the...

QUESTION 15 Cameron is going to receive an annuity for 30 years of $33.951, and Kennedy is going to receive a perpetuity of that same amount. If the appropriate discount rate is 6%, how much more are...