INVESTMENTS-CONNECT PLUS ACCESS
11th Edition
ISBN: 2810022611546
Author: Bodie
Publisher: MCG
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Question
Chapter 24, Problem 12CP
A
Summary Introduction
To explain: Market index, benchmark, and median of the portfolio.
Introduction: Market index judge the performance of portfolio, benchmark also maintain the performance and manger universe monitor the performance of manager.
B
Summary Introduction
To explain: Sharpe ratio, Treynor ratio, and Alpha value for the portfolio.
Introduction: Sharpe ratio is measured with respect to the standard deviation, Treynor ratio is measured with respect to beta value and Alpha value is difference of returns.
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During the annual interview of Acme's Pension Plan, several trustees questioned Lucy Graham a pension consultant,about various aspects of performance measurement and risk assessment. In particular, one trustee asked about the appropriateness of using each of the following benchmarks;
I). Market index
II). Benchmark normal portfolio
III). Median of the manager universe
IV). Explain 2 different weaknesses of using each of the three benchmarks to measure the performance of a portfolio
questions to be answered
Need typed answer only.Please give answer within 45 minutes.
Chapter 24 Solutions
INVESTMENTS-CONNECT PLUS ACCESS
Ch. 24 - Prob. 1PSCh. 24 - Prob. 2PSCh. 24 - Prob. 3PSCh. 24 - Prob. 4PSCh. 24 - Prob. 5PSCh. 24 - Prob. 6PSCh. 24 - Prob. 7PSCh. 24 - Prob. 8PSCh. 24 - Prob. 9PSCh. 24 - Prob. 10PS
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