EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
Question
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Chapter 24, Problem 14CP

A

Summary Introduction

To calculate: Sharpe ratio and Treynor ratio for Williamson capital and Joyner asset management.

Introduction: Sharpe ratio is calculated the risk management with respect to the total risk in portfolio. It is called as reward to volatile ratio. Treynor ratio measures the portfolio risk premium where it is difference of return and risk free rate.

B

Summary Introduction

To explain: Criteria of different rankings from the treynor ratio and Sharpe ratio.

Introduction: Different rankings are occurred due to the clashing of the both values. The value is depending on the value of beta and standard deviation.

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