During the year just ended, Anna Schultz's portfolio, which has a beta of 0.90, earned a return

Question:

During the year just ended, Anna Schultz's portfolio, which has a beta of 0.90, earned a return of 8.6%. The risk-free rate is currently 3.3%, and the return on the market portfolio during the year just ended was 9.2%.

a. Calculate Treynor's measure for Anna's portfolio for the year just ended.

b. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.25%. Which portfolio performed better? Explain.

c. Calculate Treynor's measure for the market portfolio for the year just ended.

d. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...