Your portfolio has had a 15% rate of return with a standard deviation of 18% and a
Question:
Your portfolio has had a 15% rate of return with a standard deviation of 18% and a beta of 1.1. The average return for the S&P 500 has been 11%, and the average return for US Treasury bills has been 2%. Calculate the Sharpe ratio, Treynor ratio, and Jensen’s alpha for your portfolio.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
Sharpe ratio 15 2 ...View the full answer
Answered By
Aricayos Apple
I'm a highly professional tutor and academic freelancer , with over 5 years of experience. I became one of best tutors in Chegg tutoring community and Course Hero having high helpful rate. I love helping students understand Business courses related, as it is my passion to tutor and and help students understand these amazing subjects as attached in my skills. I am also an expert on the subject of history related subjects since at one point had handled these subjects. I also have a bachelor's degree in bachelors of science in Business Administration from City of Malabon University in Philippines. I am currently working on getting a master's degree in the field Business Administration from City of Malabon University. Meanwhile, you can learn how to solve complex problems consistently with me.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The spreadsheet below has annual returns for three mutual fundsCapital Appreciation, High Return and Total Returnfor 10 years. A market return and a risk-free rate are provided, along with the beta...
-
The Advtech Group is a JSE listed company in South Africa. Advtech operates within the education and recruitment industries in South Africa and the rest of Africa.JSE 100 is an index on the...
-
An analyst wants to evaluate portfolio X, consisting entirely of U.S. common stocks, using both the Treynor and Sharpe measures of portfolio performance. The following table provides the average...
-
Assume that when human resource managers are randomly selected, 57% say job applicants should follow up within two weeks. If 9 human resource managers are randomly selected, find the probability that...
-
Let Y 1 , Y 2 , . . . , Y n be a random sample from a normal distribution. Use the statement of Question 7.3.4 to prove that S 2 is consistent for 2 . Var(S 2 )= 2 4 /n 1
-
Two businesses, Brown Bag Corp. and April Sales Co., have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets. Requirement 1. Using only these...
-
Clearly, this phase is very dependent upon the people on your team. APF gives team members great discretion in completing their work. If you were managing an APF project, how would you balance your...
-
Franklin Templeton has just invested $9,260 for his son (age one). This money will be used for his sons education 18 years from now. He calculates that he will need $71,231 by the time the boy goes...
-
A manufactured product has the following information for June. \ table [ [ , Standard Quantity and Cost,Actual Results ] , [ Direct materials, 7 pounds @ $ 8 per pound, 5 3 , 8 0 0 pounds @ $ 8 . 1 0...
-
Two-lens systems. In Figure stick figure O (the object) stands on the common central axis of two thin, symmetric lenses, which are mounted in the boxed regions. Lens 1 is mounted within the boxed...
-
The monthly returns for Visa (V) and Pfizer (PFE) for 20182020 are provided in the chart below. In addition, the monthly return for the SPDR S&P 500 ETF Trust (SPY) is provided; SPY is often used as...
-
Explain how the Sharpe ratio and the Treynor ratio can be considered reward-to-risk measures.
-
Hardware Corporation issued $75,000 of 6 percent, 10-year, nonconvertible bonds with detachable stock purchase warrants. Each $1,000 bond carried 20 detachable warrants, each of which was for one...
-
The Budgeted results of R Ltd as follows: Product A: Sales=2,50,000, PV ratio=50% Product B: Sales=4,00,000, PV ratio=40% Product C: Sales=6,00,000, PV ratio=30% Overheads-fixed at 5,02,200...
-
Max Corporations stock price is currently $ 1 0 0 . At the end of 3 months it will be either $ 1 1 0 or $ 9 0 . 9 1 . The continuously compounded risk - free interest rate is 2 % . Using the...
-
28. Winston Company has a debt-to-equity ratio of 1.5. Current cost of equity is 12%. The corporate tax rate is 40%. What is Winston Company's unleveraged cost of equity (risk-free interest rate =...
-
Sta. Elena Merchandising Company plans to sell in December 15,000 units of its product at a unit price of P20.The estimated gross profit is 25% of sales.The inventory will be increased in December in...
-
What are closed-end funds? Why do some closed-end funds use leverage to raise more funds rather than issue new shares like mutual funds? Why might the price of a share of a closed-end fund diverge...
-
Suppose you see a 2013 Volkswagen Jetta GLS Turbo Sedan advertised in the campus newspaper for $9,000. If you knew the car was reliable, you would be willing to pay $10,000 for it. If you knew the...
-
Sportique Boutique reported the following financial data for 2012 and 2011. Instructions(a) Calculate the current ratio for Sportique Boutique for 2012 and 2011.(b) Suppose that at the end of 2012,...
-
Discuss the conflict of interests among production, finance, accounting, and marketing executives. How does this conflict affect the operation of an individual firm? The economic system? Why does...
-
In the short run, competition sometimes leads to inefficiency in the operation of our economic system. Many people argue for monopoly in order to eliminate this inefficiency. Discuss this solution.
-
How would officially granted monopolies affect the operation of our economic system? Consider the effect on allocation of resources, the level of income and employment, and the distr i bution of...
-
Seprah had a $ 2 1 , 0 0 0 net capital loss which was realized in 2 0 1 8 . First carryback 3 years, if cannot carryforward 1 0 years. What does this mean show clearly what is happening in this...
-
Calculate Debt to Equity Ratio: Requirements: Given the balance sheet information: Total Debt: $600,000 Total Equity: $1,200,000 Compute the debt to equity ratio. Express the debt to equity ratio as...
-
Dell Inc. is manufacturing customized desktop computers. The company incurred direct materials costs of $4,000,000 and direct labor costs of $3,000,000 for a specific desktop computer order. The...
Study smarter with the SolutionInn App