Jordan Jones (JJ) and Casey Carter (CC) are portfolio managers at your firm. Each manages awell-diversified portfolio. Your boss has asked foryour opinion regarding their performance in thepast year. JJ’s portfolio has a beta of 0.6 and hada return of 8.5%; CC’s portfolio has a beta of 1.4and had a return of 9.5%. Which manager hadbetter performance? Why?
Jordan Jones (JJ) and Casey Carter (CC) are portfolio managers at your firm. Each manages awell-diversified portfolio. Your boss has asked foryour opinion regarding their performance in thepast year. JJ’s portfolio has a beta of 0.6 and hada return of 8.5%; CC’s portfolio has a beta of 1.4and had a return of 9.5%. Which manager hadbetter performance? Why?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Jordan Jones (JJ) and Casey Carter (CC) are
well-diversified portfolio. Your boss has asked for
your opinion regarding their performance in the
past year. JJ’s portfolio has a beta of 0.6 and had
a return of 8.5%; CC’s portfolio has a beta of 1.4
and had a return of 9.5%. Which manager had
better performance? Why?
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