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An investment portfolio has a total return of 15.3%, a standard deviation of 19.3%, and a beta of 1.11. The risk free rate of interest

  1. An investment portfolio has a total return of 15.3%, a standard deviation of 19.3%, and a beta of 1.11. The risk free rate of interest is 3.75% and the market rate of return is 10.7%. What is the value of the Treynor measure of this portfolio?

    Between 5.1% and 11%

    Over 11%

    Between 0.4% and 5%

    Between -5% and 0.3%

2. A mutual fund portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk free rate is 3.8%, the market return is 12.4%. Jensen's measure of this portfolio's performance is

Between 0.8% and 5%

Between -5% and 0.7%

Between 5.1% and 10.3%

Over 10.3%

3. Securitization is the practice of

increasing the safety of asset backed securities by insuring them.

protecting the privacy of borrowers whose loans have been sold to a third party.

selling government debt in the private sector.

bundling loans into large pools and dividing them into bond-like securities.

4. Charting is the technique of

sorting through databases of securities to select one based on certain parameters.

determining the amount of money that must be saved based on a given financial goal.

plotting the performance of a security over time.

monitoring a stock based on the underlying economic conditions.

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