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You currently hold a portfolio that has SPY ETF in it (SPY is an Exchange traded Fund that follows S&P 500 performance and therefore approximates
You currently hold a portfolio that has SPY ETF in it (SPY is an Exchange traded Fund that follows S&P 500 performance and therefore approximates the Market). You are considering adding ORCL stock to it. Table below summarizes historical data analysis of the SPY, ORCL, and portfolio of SPY+ORCL performance. It also has regression analysis summary information. Use this table to answer next 7 questions: Portfolio of SPY ORCL Portfolio of (SPY ORCL) Average Variance St. Dev. 0.12% 0.000030 0.55% 0.18% 0.000117 1.08% 0.13% 0.000034 0.58% Rf 0.05% Intercept Beta 0.0005 1.032 0.0001 1.006 1 ST.Dev. (ei) Var (ei) 0.92% 0.000085 0.16% 0.000203 R (CAPM Predicted) Jehnsen alpha Treynor Index Sharpe Ratio 0.0002 0.1273 0.0013 0.1204 0.0008 0.1379 15. Based on Sharpe Index, which one has the best performance? A. SPY B. ORCL C. SPY+ORCL
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