2020 Dow Jones Barclays Capindex index-3.63.16.031.58-7.99-5.247.01-4.518.923.810.016.68JanFebMarAprMayJunJulAugSepOctNovDec1.580.40-0.851.051.711.860.682.010.02-0.16-0.70-1.80Compute for the Treynor Ratio value if the T-Bill is at 2% while the market rate is at 5% (decimalform)

Risk free rate is 2% Market rate is 5% To Compute: Treynor Ratio

Answered: 2020 Dow Jones Barclays Cap index Jan…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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% Return on T-Bills, Stocks and Market Index State of the economy Probability T-Bills Phillips Pay -up Rubber-made Market Index Recession 0.2 7 -22 28 10 -13 Below Average 0.1 7 -2 14.7 -10 1 Average 0.3 7 20 0 7 15 Above Average 0.3 7 35 -10 45 29 Boom 0.1 7 50 -20 30 43 Mean 7 16.9 2.07 19.60 15 Standard Deviation 0 23.4 15.62 18.92 17.71 Coefficient of Variation 0 1.39 7.55 0.97 1.18 Covariance with MP 0 0.04 -0.3 0.02 0.03 Correlation with Market Index 0 1 -1.0 0.69 1 Beta 0 1.32 -0.88 0.74 1 CAPM Req. Return Valuation (Overvalued/Undervalued/Fairly valued) Fairly valued Overvalued Undervalued Undervalued Fairly valued Nature of stock Defensive Aggressive Defensive Defensive Defensive Showing all working complete the table showing CAP M req…
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Maturity Days to Maturity BID ASKED CHANGE ASKED YIELD 26 Sep 19 23 1.940 1.930 0.002 1.968 12 Dec 19 100 1.878 1.868 -0.018 1.908 How can we calculate Change numbers. Why one is negative while the other is positive

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