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Based on the following information, did the portfolio over perform or under performed? Investment in ABC = $1,200,000 Investment in XYZ = $800,000 Risk Free
Based on the following information, did the portfolio over perform or under performed? Investment in ABC = $1,200,000 Investment in XYZ = $800,000 Risk Free Rate = 2.50% Market Premium = 4.00%
Yearly Returns | |||
Year | Market | ABC | XYZ |
1 | 16.50% | 43.63% | 32.29% |
2 | 13.89% | 41.41% | 0.84% |
3 | -5.56% | -46.74% | -45.97% |
4 | 15.98% | 40.12% | -7.19% |
5 | -2.69% | 18.30% | 14.25% |
6 | -4.58% | 49.62% | 30.72% |
7 | 12.53% | 21.08% | 22.98% |
8 | -6.35% | 27.04% | 4.67% |
9 | 18.79% | 36.60% | -34.65% |
10 | 22.47% | 28.65% | 46.53% |
Question options:
| Over-performed by 5.89% |
| Under-performed by 18.16% |
| Over-performed by 12.27% |
| Over-performed by 18.16% |
| Under-performed by 12.27% |
| Under-performed by 5.89% |
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