Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 3.9%. The return on the market portfolio during the year just ended was 10.7%. . Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended. . Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.19. Which portfolio performed better? Explain. . Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended. . The Jensen's measure (Jensen's alpha) for Chee's portfolio is (Round to two decimal places.) ...
Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 3.9%. The return on the market portfolio during the year just ended was 10.7%. . Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended. . Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.19. Which portfolio performed better? Explain. . Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended. . The Jensen's measure (Jensen's alpha) for Chee's portfolio is (Round to two decimal places.) ...
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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Transcribed Image Text:Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 3.9%. The return on the market portfolio during the year just ended was 10.7%.
a. Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended.
b. Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.19. Which portfolio performed better? Explain.
c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.
a. The Jensen's measure (Jensen's alpha) for Chee's portfolio is
(Round to two decimal places.)
(…)
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