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boue VIC 3000 TEL: 03 9654 0985 LL: 08 9890 8535 The following data are available relating to the performance of Sooner Stock and the
boue VIC 3000 TEL: 03 9654 0985 LL: 08 9890 8535 The following data are available relating to the performance of Sooner Stock and the market portfolio: (a) Variable Sooner Stock Market Portfolio Average return Standard deviation of return Beta Residual standard deviation 20% 44% 1.8 20% 11% 19% 1.0 0.0% The risk-free return during the sample period is 3% per annum. (i) What are the Sharpe, Treynor, Jensen and information ratio measures of (ii) Which of the above performance measures is relevant to you if Sooner is the only (ii) Which of the above performance measures is relevant to you if Sooner is only one performance evaluation for Sooner Stock? security you have invested in? Why? stock among many stocks in your investnent portfolio? Why
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