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Consider the following table. Company A Company B Standard Deviation 7% 8.5% Mean Return 12% 13% Beta 1.2 1.45 Mean risk-free rate is 3%. Calculate
Consider the following table.
|
| Company A | Company B |
| Standard Deviation | 7% | 8.5% |
| Mean Return | 12% | 13% |
| Beta | 1.2 | 1.45 |
Mean risk-free rate is 3%.
- Calculate Sharpe Index for both the companies. Which one performed better?
- Calculate Treynor Index for both the companies. Which one performed better?
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Personal Financial Literacy
Authors: Joan S. Ryan , Christie Ryan
3rd Edition
1337412686,1305980697
