14. (Regression, Sharpe, Jensens alpha, Treynor for portfolio) Using the data for the S&P 500, FedEx, IBM,
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14. (Regression, Sharpe, Jensen’s alpha, Treynor for portfolio) Using the data for the S&P 500, FedEx, IBM, and 3M from exercises 10, 11, and 13 above, compute the portfolio alpha, αP, and the portfolio beta, βP, of a portfolio composed of 30% of 3M stock, 50% of FedEx stock, and 20% of IBM stock.
Explain the diversification advantages of this portfolio.
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Related Book For
Principles Of Finance With Excel
ISBN: 9780190296384
3rd Edition
Authors: Simon Benninga, Tal Mofkadi
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