Question
The risk-free rate is currently 8.2%. Use the data in the accompanying table for the Fio family's portfolio and the market portfolio during the year
The risk-free rate is currently 8.2%. Use the data in the accompanying table for the Fio family's portfolio and the market portfolio during the year just ended to answer the questions that follow.
Data Item
(Fios' Portfolio) (Market Portfolio)
Rate of return (13.1%) (11.2%)
Standard deviation of return (12.9%) (10.3%)
Beta (0.88) (1.00)
A.
The Sharpe's measure for the Fio portfolio is (blank) ?
The Sharpe's measure for the market portfolio is (blank) ?
Based on the computed Sharpe's measures, the Fio portfolio's performance is (superior or inferior) to the markets performance
B.
The Treynor's measure for the Fio portfolio is (blank%) ?
The Treynors's measure for the market portfolio is (blank%) ?
Based on the computed Treynor's measures, the Fio portfolio's performance is (superior or inferior) to the markets performance
C.
The Jensen's measure for the Fio portfolio is (blank%) ?
Based on the computed Jensen's measures, the Fio portfolio's performance is (outperforms or under performs) the markets performance
D.
On the basis of your findings in parts a, b, and c, the Fio portfolio (underperformed or outperformed) the market during the year just ended.
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