Question
Assume the risk-free rate of return is 2% and the market rate of return is 11%. Rank the following investments based on Sharpe Ratio, Treynors
Assume the risk-free rate of return is 2% and the market rate of return is 11%. Rank the following investments based on Sharpe Ratio, Treynors Ratio and Jensens alpha. Are the three rankings the same or different? Explain why?
Investment
Return %
Beta
Standard Deviation %
Appollo
9
0.8
12
Bolsh
10
0.9
14
Helena
17
1.5
20
Jberg
20
2.4
25
Putli
12
1.1
15
plz try to solve whole answer
Assume the risk-free rate of return is 2% and the market rate of return is 11%. Rank the following investments based on Sharpe Ratio, Treynors Ratio and Jensens alpha. Are the three rankings the same or different? Explain why?
Investment | Return % | Beta | Standard Deviation % |
Appollo | 9 | 0.8 | 12 |
Bolsh | 10 | 0.9 | 14 |
Helena | 17 | 1.5 | 20 |
Jberg | 20 | 2.4 | 25 |
Putli | 12 | 1.1 | 15
plz try to solve whole answer |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
