FIN 112(LL)-W/CONNECT >CUSTOM<
6th Edition
ISBN: 9781307258448
Author: Kapoor
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 16, Problem 16.1PQ4
Summary Introduction
To determine:
Difference among class A, B and C shares.
Introduction: Mutual fund is a security which is issued by pooling money from investors with the sole motive of investing in different kind of securities. Mutual funds give chance to small investor to invest in security with professional expertise.
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Congratulations! Your portfolio returned 16.7% last year, 2.5% better than the market return of 14.2%. Your portfolio had a standard deviation of earnings equal to
18%, and the risk-free rate is equal to 4.4%. Calculate Sharpe's measure for your portfolio. If the market's Sharpe's measure is 0.29, did you do better or worse than
the market from a risk/return perspective?
The Sharpe's measure of your portfolio is
(Round to two decimal places.)
On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $258,000. At the end of May 2020, Simon sold one of the stocks, which had
a beginning-of-year value of $26,900, for $31,400. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks
in his portfolio of $11,900 during the year. On December 31, 2020, Simon's portfolio had a market value of $246,000. Find the HPR on Simon's portfolio during the
year ended December 31, 2020. (Measure the amount of withdrawn funds at their beginning-of-year value.)
Simon's portfolio HPR during the year ended December 31, 2020, is %. (Round to two decimal places.)
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%.
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 -0.25. 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.
Chapter 16 Solutions
FIN 112(LL)-W/CONNECT >CUSTOM<
Ch. 16 - Prob. 16.1PQ1Ch. 16 - Prob. 16.1PQ2Ch. 16 - Prob. 16.1PQ3Ch. 16 - Prob. 16.1PQ4Ch. 16 - Prob. 16.1PQ5Ch. 16 - Prob. 16.2PQ1Ch. 16 - Prob. 16.2PQ2Ch. 16 - Prob. 16.2PQ3Ch. 16 - Prob. 16.3PQ1Ch. 16 - Prob. 16.3PQ2
Ch. 16 - Prob. 16.3PQ3Ch. 16 - Prob. 16.4PQ1Ch. 16 - Prob. 16.4PQ2Ch. 16 - Prob. 16.4PQ3Ch. 16 - Prob. 16.4PQ4Ch. 16 - Prob. 16.4PQ5Ch. 16 - Prob. 1FPPCh. 16 - Prob. 2FPPCh. 16 - Prob. 3FPPCh. 16 - Prob. 4FPPCh. 16 - Prob. 5FPPCh. 16 - Prob. 6FPPCh. 16 - Prob. 7FPPCh. 16 - Prob. 8FPPCh. 16 - Prob. 9FPPCh. 16 - Prob. 10FPPCh. 16 - Prob. 11FPPCh. 16 - Prob. 12FPPCh. 16 - Prob. 13FPPCh. 16 - Prob. 14FPPCh. 16 - Prob. 15FPPCh. 16 - Prob. 1FPACh. 16 - Prob. 2FPACh. 16 - Prob. 3FPACh. 16 - Prob. 4FPACh. 16 - Prob. 5FPACh. 16 - Prob. 6FPACh. 16 - Prob. 7FPACh. 16 - Prob. 1FPCCh. 16 - Prob. 2FPCCh. 16 - Prob. 3FPCCh. 16 - Prob. 4FPCCh. 16 - Prob. 1CCCh. 16 - Prob. 2CCCh. 16 - Prob. 3CCCh. 16 - Prob. 4CCCh. 16 - Prob. 1DSDCh. 16 - Prob. 2DSD
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- During the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of 8.1%. The risk-free rate is currently 4.1%, and the return on the market portfolio during the year just ended was 9.4%. 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 1.39%. 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.arrow_forwardNeed answer.arrow_forwardSolve plz nowarrow_forward
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