Tetom of 0.370 Calculate Treynor's measure for Anna's portfolio for the year just ended. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.26%. Which portfolio performed better? Ex Calculate Treynor's measure for the market portfolio for the year just ended. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended. The Treynor's measure for Anna'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
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During the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of 8.3%. The risk-free rate is currently 3.9%, and the return on the market portfolio during the year just ended was 8.7%.
a. Calculate Treynor's measure for Anna's portfolio for the year just ended.
b. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.26%. Which portfolio performed better? Explain.
c. Calculate Treynor's measure for the market portfolio for the year just ended.
d. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended.
a. The Treynor's measure for Anna's portfolio is %. (Round to two decimal places.)
Transcribed Image Text:During the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of 8.3%. The risk-free rate is currently 3.9%, and the return on the market portfolio during the year just ended was 8.7%. a. Calculate Treynor's measure for Anna's portfolio for the year just ended. b. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.26%. Which portfolio performed better? Explain. c. Calculate Treynor's measure for the market portfolio for the year just ended. d. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended. a. The Treynor's measure for Anna's portfolio is %. (Round to two decimal places.)
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