Annual performance statement from your investment advisor

Assignment Help Financial Management
Reference no: EM131454098

You just received your annual performance statement from your investment advisor. The statement indicates that your portfolio return for the past year was up 25%. In addition, you noticed, within the statement, that the S&P rose 18%. Also, the statement reflected that your portfolio had a beta of 1.25. Further on, you noticed that the risk-free rate of return was 1%. To your dismay, the statement did not provide what the risk-adjusted rate of return was for the year. Therefore, you called your investment advisor for a clarification. The investment advisor provides you with the risk-adjusted rate of return. Are you happy with the risk-adjusted portfolio performance? Explain fully. What is the portfolio’s Jensen Measure?

Reference no: EM131454098

Questions Cloud

What is the meaning and usage of to be : What is the meaning and usage of "to Be"?
Indicate the role of cross functional teaming : From your research and experience, please indicate the role of cross functional teaming (intra-and Inter-organization) in purchasing
How will the regression equation be affected : Prove that a simple regression line must pass through the point (X¯,Y¯). How will the regression equation be affected if a point with these coor-dinates.
Develop a checklist for preparing the procedures manual : Develop a checklist for preparing the procedures manual, and share it in the Discussion Board.
Annual performance statement from your investment advisor : You just received your annual performance statement from your investment advisor. Are you happy with the risk-adjusted portfolio performance?
Identify problem statement and complete root-cause analysis : Identify your problem statement and complete a root-cause analysis. Identify which quality tools you used to identify and vet the problem - Explain the quantitative and qualitative tools you used and provide a summary of how you arrived at your prob..
Program comprehensive exam : Program Comprehensive Exam This on-line exam contains 50-questions over the topical areas of:
The value of inventory listed on the firm balance sheet : What’s the value of inventory listed on the firm’s balance sheet?
Relationship to human resources management : Explain to them the key elements of project management and its relationship to human resources management (HRM).

Reviews

Write a Review

Financial Management Questions & Answers

  What will happen to recs adr price

Suppose REC's stock price rises from €30.00 to €33.00 per share. If the exchange rate does not change, what will happen to REC's ADR price?

  What is the present value of the annuity

A 10-year annuity pays $2,500 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity..

  Draw on a diagram with the capital market line derived

The expected return on the market portfolio μm = E[Rm] = 15%, the standard devia- tion is σm = 25% and the risk-free rate is Rf = 5%. Suppose the CAPM holds. Draw on a diagram with the Capital Market Line (CML) derived from the above data. Make sure ..

  Most recent dividend per share paid on the stock

Gontier Corporation stock currently sells for $64.48 per share. The market requires a return of 9 percent on the firm’s stock. If the company maintains a constant 4.5 percent growth rate in dividends, what was the most recent dividend per share paid ..

  Based on nominal cash flows and nominal discount rate

You are considering a new project, which costs $600,000 and is expected to have the following nominal cash flows of $200,000, $220,000, $220,000, $200,000, and $180,000 in years 1 through 5. The company’s nominal cost of capital is 10%. The expected ..

  Difference between open end and closed end funds

Explain the difference between open-end and closed-end funds.- What is the effect of a load mutual fund versus a no-load fund?

  About the price and yield

An 6% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 6.7292%. What is the bond's price?

  Evaluating the financing of healthcare organization include

Typically, the cost components to include when evaluating the financing of a healthcare organization include:

  Find the price of a call option on the stock

The current price of a stock is $15. In 6 months, the price will be either $20 or $11. The annual risk-free rate is 4%. Find the price of a call option on the stock that has a strike price of $14 and that expires in 6 months.

  What is the expected risk-free rate of return

If asset A has a beta of 1.3, has an expected return of 25 percent, and the expected market return is 20 percent, what is the expected risk-free rate of return?

  Firms weighted average cost of capital

Proposition I (with Corporate Taxes) Firm value increases with leverage VL = VU + TC B. Proposition II (with Corporate Taxes) Some of the increase in equity risk and return is offset by the interest tax shield 5. Based on the second proposition, what..

  Present value of the ordinary annuities

Find the present value of the following ordinary annuities. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the s..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd