Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the stock price data on the 26 stocks on the Problem 2 tab of the accompanying spreadsheet. Your job is to create a personalized

Consider the stock price data on the 26 stocks on the Problem 2 tab of the accompanying spreadsheet. Your job is to create a personalized portfolio made up from parts of your name. Specifically, select the stocks that correspond to the first 5 letters of your first name. If your first name does not have five letters, continue by using your last name until you get to five in total. If your first name has repeated letters, just keep going with until you get to five letters. You will put 30% in each of the first two letters, and then 13.3% in each of the last three letters. Using the Market and Risk-free rate columns as well, calculate the following. Please note that these are monthly data, so it is most appropriate to annualize them prior to calculations. a. What is the Sharpe Ratio of the Portfolio you created? b. What is the Treynor Ratio of the Portfolio you created? c. What is the Jensons alpha (annualized) of the Portfolio you created?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Startup CEO A Field Guide To Scaling Up Your Business

Authors: Matt Blumberg

2nd Edition

1119723663, 978-1119723660

More Books

Students also viewed these Finance questions