Question
An investor was tracking SBI and HDFC mutual funds whose return and beta are as given below: Return on the market portfolio is 11%, while
An investor was tracking SBI and HDFC mutual funds whose return and beta are as given below:
Return on the market portfolio is 11%, while the risk-free return is 8%. Assume standard Deviation of the market to be 7%.
a. Compute the Jensen index for each of the funds and comment on which one is better.
b. Compute the Treynor index for each of the funds and comment on which one is better.
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a 1 Portfolio SBI 2 Portfolio HDFC Ans Jenson Index of portfolio SBI is ...
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Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
