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Your preliminary analysis of two stocks has yielded the information set forth below. Theb. As an equity portfolio manager, you may use certain risk -

Your preliminary analysis of two stocks has yielded the information set forth below. Theb. As an equity portfolio manager, you may use certain risk-adjusted performance measures.
Describe and discuss the following measures of performance evaluation!
Treynor Index, William Sharpe, Michael Jensen
Using the following table evaluate which is better than other using three different measure of performance evaluation.
\table[[Asset,E(R)%,beta,Stdv],[x,12,1.25,16],[Y,11,1.0,12],[Risk-free,3,0,0],[Market index,12,1,12]]
return for the market is 10 percent and the risk-free rate is 5 percent.
i) Calculate the required rate of return using CAPM model and identify the growth
rate for the dividend.
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