Question
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?
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