ESSEN.OF.INVESTMENTS+CONNECT
10th Edition
ISBN: 9781260361605
Author: Bodie
Publisher: MCG
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Chapter 18, Problem 4WM
Summary Introduction
To determine:
To determine the beta and alpha coefficients using the standard index and best fit index and how these are compared to the fund parameters.
Introduction:
Best fit and the standard results are helpful for the investors.
The standard index helps investors to plan the portfolio funds diversification. For similar funds, the best fit index helps in comparing the betas and alphas.
Alpha is a measure of performance which gauges the investment performance against market index.
Beta measures the broad market overall risk or volatility. While from passive index investing, beta can be obtained, alpha is the result of active investing.
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Chapter 18 Solutions
ESSEN.OF.INVESTMENTS+CONNECT
Ch. 18 - Prob. 1PSCh. 18 - Prob. 2PSCh. 18 - Prob. 3PSCh. 18 - 4. Two portfolio managers use different procedures...Ch. 18 - Prob. 5PSCh. 18 - Prob. 6PSCh. 18 - Prob. 7PSCh. 18 - Conventional wisdom says that one should measure a...Ch. 18 - Prob. 9PSCh. 18 - Prob. 10PS
Ch. 18 - Bill Smith is evaluating the performance of four...Ch. 18 - Prob. 12PSCh. 18 - Prob. 13PSCh. 18 - Prob. 14PSCh. 18 - Prob. 15PSCh. 18 - Prob. 16PSCh. 18 - Prob. 17PSCh. 18 - Prob. 18PSCh. 18 - Prob. 19PSCh. 18 - Prob. 1CPCh. 18 - Prob. 2CPCh. 18 - Prob. 3CPCh. 18 - Prob. 4CPCh. 18 - Prob. 1WMCh. 18 - Prob. 2WMCh. 18 - Prob. 3WMCh. 18 - Prob. 4WM
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