Question
The returns for stock A and market portfolio are as follows: Year Stock A Return Market portfolio return 2006 11% 9% 2007 10% 2% 2008
The returns for stock A and market portfolio are as follows: Year Stock A Return Market portfolio return 2006 11% 9% 2007 10% 2% 2008 3% 1% Market risk premium is 5% and risk-free rate is 2%. (6 MARKS) What are the beta of your asset A? (5 MARKS) What is your stock As Jensens alpha? Is stock A under- or over-valued? (3 MARKS) What is the Sharpe ratio of the stock A? (2 MARKS) What is the Treynor measure of performance evaluation?
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Accounting For Non-Accounting Students
Authors: John R. Dyson, Ellie Franklin
9th Edition
978-1292128979, 1292128976
