Question
During the year just ended, Anna Schultz's portfolio, which has a beta of 0.99, earned a return of 8.5%. The risk-free rate is currently 3.4%,
During the year just ended, Anna Schultz's portfolio, which has a beta of 0.99, earned a return of 8.5%. The risk-free rate is currently 3.4%, and the return on the market portfolio during the year just ended was 9.3%. a.Calculate Treynor's measure for Anna's portfolio for the year just ended. b.Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.33%. Which portfolio performed better? Explain. c.Calculate Treynor's measure for the market portfolio for the year just ended. d.Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended. a.The Treynor's measure for Anna's portfolio is nothing%. (Round to two decimal places.) b.Anna's portfolio outperformed underperformed Stacy's with a TM of 5.15 or 1.33 % versus one of 1.33%. (Select from the drop-down menus.) c.The Treynor's measure for the market portfolio is nothing %. (Round to two decimal places.) d.The market outperformed or underperformed Anna's portfolio; its TM was 5.15 or 1.33 5.90 %, compared to 5.15 or 1.33 5.90 % for her portfolio.(Select from the drop-down menus.)
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