
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 1, Problem 2LO
Summary Introduction
To discuss: Process of personal financial planning and defining financial goals.
Personal financial planning is a systematic process of considering important elements individual’s financial affairs and aimed to fulfil their financial goals.
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Chee Chew's portfolio has a beta of 1.27 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 4.6%. The return on the market
portfolio during the year just ended was 10.5%.
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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 -0.25. Which portfolio
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c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.
During the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of 8.1%. The risk-free rate is currently 4.1%, and the return on the
market portfolio during the year just ended was 9.4%.
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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 1.39%. Which portfolio
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Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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