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The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Wong family's portfolio and the market portfolio during the year
The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Wong family's portfolio and the market portfolio during the year just ended to answer the questions that follow. Data Item Wong's Portfolio (%) Market Portfolio (%) Rate of return 12.8 11.2 Standard deviation 13.5 9.6 of return Beta 1.10 1.00 Required: (1) Calculate Sharpe's measure for the portfolio and the market. Compare the two measures, and assess the performance of Wong's portfolio during the year ended. (5 marks) Calculate the Treynor's measure for the portfolio and the market. Compare the two measures, and assess the performance of Wong's portfolio during the year just ended. (5 marks) Calculate Jensen's measure (Jensen's alpha). Use it to assess the performance of the Wong's portfolio during the year just ended. (5 marks) (iv) On the basis of your finding in parts (1), m) and (in), assess the performance of the Wong's portfolio during the year just ended. (5 marks) (1) (111)
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