Question
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
-
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. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started