Calculate treynors measure for the portfolio and the market

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Reference no: EM133926322

Problem

The risk-free rate is currently 7.5%.

Use the data in the accompanying table for the Fio family's portfolio and the market portfolio during the year just ended to answer the questions that follow.

In order to copy the contents of the data table below into a spreadsheet.)

Data Item	?Fios' Portfolio	Market Portfolio
Rate of return	13.4?%	11.4?%
Standard deviation of return	13.5?%	9.7?%
Beta	1.17	1.00

I. Calculate Sharpe's measure for the portfolio and the market. Compare the two measures, and assess the performance of the Fios' portfolio during the year just ended. Get the instant assignment help.

II. Calculate Treynor's measure for the portfolio and the market. Compare the two, and assess the performance of the Fios' portfolio during the year just ended.

III. Calculate Jensen's measure (Jensen's alpha). Use it to assess the performance of the Fios' portfolio during the year just ended.

IV. On the basis of your findings in parts I, II, and III, assess the performance of the Fios' portfolio during the year just ended

Reference no: EM133926322

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