You have managed three portfolios for 4 weeks during the semester. Initially in each portfolio Rs 1 million were invested as your OE . Rf for 4 weeks holding period was 0.5, and the following were the weekly Rps realized from each portfolio: Week Market Index Portfolio Passive Portfolio Active Portfolio 1 1 0 2 2 -2 -2 0 3 8 7 10 4 -1 0 10 REQUIRED: 1.Average weekly Rp earned by each portfolio market portfolio passive portfolio active portfolio 2. Please calculate total risk of each portfolio as: a) weekly VARp market portfolio passive portfolio active portfolio (please note: VARp = [{(Rp week1 Avg Rp) 2 + (Rp week2 Avg Rp) 2 + ......+ (Rp week 4 Avg Rp) 2 }/ no of weeks ] ] or use calculator but show the key sequence when using calculator in this or the following parts of this question b) weekly SDp market portfolio passive portfolio active portfolio c) SDp for 4- week holding period as : weekly SDp * 4 market portfolio passive portfolio active portfolio 3. Please calculate actually realized Rp of each portfolio for the 4-week holding period. Note: actual Rp = (W 4 - Wo ) / Wo. Note that Wo = Rs 1 million for each portfolio. To find W4 of each portfolio do this: W 4 = Wo [(1 + Rp of week 1)(1 + Rp of Week 2).. ....(1+ Rp of Week 4)] . (here Rp write in decimal points, 2% as 0.02) market portfolio(RM) passive portfolio (R Passive) active portfolio (R Active) 4. Please calculate COV of each portfolios return with the return of Market portfolio, (RM). Note: COV P, M = [(Rp week1 Avg Rp)(RM week1 Avg RM) + (Rp week2 Avg Rp)(RM week2 Avg RM) +.................................+ (Rp week 5 - Avg Rp)(RM week 4 Avg RM)] / no of weeks market portfolio passive portfolio active portfolio 5. Beta of each portfolio. (note Bp = COV P,M / VARM) market portfolio passive portfolio active portfolio 6.Expected 4-week holding period Rp of each portfolio using SML equation. (Note: According to SML, Expected Rp for 4 week holding period = Rf for 4 weeks + {(RM for 4 weeks Rf for 4 weeks ) * Bp} market portfolio passive portfolio active portfolio 7.Differential returns on each portfolio from SML. ( Differential returns = actual Rp for 4 weeks - expected Rp for 4- week from SML) market portfolio passive portfolio active portfolio 8.please Rank your 3 portfolios on the basis of differential returns from SML. Rank 1 is ______________ Rank 2 is _______________ Rank 3 is ________________ 9. Please calculate expected Rp of each portfolio using CML equation. (Note: According to CML, Expected Rp for 4 weeks = Rf for 4 weeks + {(RM for 4 weeks Rf for 4 weeks ) / SDM for 4 weeks } * SDp for 4 weeks market portfolio passive portfolio active portfolio 10. Find differential returns of each portfolio from CML (Note: Differential returns from CML = actual Rp for 4 weeks expected Rp for 4 weeks from CML) market portfolio passive portfolio active portfolio 11. please Rank your 3 portfolios on the basis of differential returns from CML Rank 1 is ________________ Rank 2 is ________________ Rank 3 is ________________ 12. Find excess returns to total risk ratio (Sharpes ratio ) for each Portfolio . (Please note : Sharpes ratio = (Actual Rp for 4 weeks Rf for 4 weeks ) / SDp for 4 weeks market portfolio passive portfolio active portfolio 13. Please Rank your 3 portfolios on the basis of Sharpes ratio. Rank 1 is ________________ Rank 2 is ________________ Rank 3 is ________________ 14. Find excess returns to relevant risk ratio ( Treynors ratio ) for each portfolio. ( Please note : Treynors ratio = (Actual Rp for 4 weeks Rf for 4 weeks ) / Bp. market portfolio passive portfolio active portfolio 15. Please Rank your 3 portfolios on the basis of Treynors ratio. Rank 1 is -_______________ Rank 2 is ------------------------ Rank 3 is ------------------------ 16. On the basis of 4 methods of portfolio performance evaluation you used above, which portfolio in your opinion came first, second and third, please give rationale only in couple of lines (do not write a long paragraph, try to write in clear handwriting that is readable)