Explain how the ir measures portfolio performance

Assignment Help Portfolio Management
Reference no: EM13923343

1. The information ratio (IR) has been described as a benefit-cost ratio. Explain how the IR measures portfolio performance and whether this analogy is appropriate.

2. Assessing the performance of an investment portfolio can be accomplished with either returns-based measures or holdings-based measures. What are the major advantages and major disadvantages of each approach to performance measurement?

Reference no: EM13923343

Questions Cloud

What additional information is provided by a comparison : Under what circumstances would it make sense to use both measures to compare the performance of a given set of portfolios? What additional information is provided by a comparison of the rankings achieved using the two measures?
Determine the best way to get to your destination : Determine the best way to get to your destination, and set up the travel arrangements to and from. You may also need transportation while you are at your destination, so arrange that too
Describe how the jensen measure of performance is calculated : Describe how the Jensen measure of performance is calculated. Under what conditions should it give a similar set of portfolio rankings as the Sharpe and Treynor measures?
Staff to maintain integrity of the network : Offsite storage like Cloud technology can allow access to all critical information without invests additional resource to maintain the storage solutions and the staff to maintain integrity of the network.
Explain how the ir measures portfolio performance : The information ratio (IR) has been described as a benefit-cost ratio. Explain how the IR measures portfolio performance and whether this analogy is appropriate.
Potential physical vulnerabilities and threats : Identify and analyze any potential physical vulnerabilities and threats that require consideration.
Identify the key environmental experiences : Identify the key environmental experiences that influenced your life. Recall childhood memories of special places where you formed some connections with the earth through emotional experiences
Difference in the price of a particular : A consumer organization wants to know if there is a difference in the price of a particular toy at three different types of stores. The price of the toy was checked in a sample of five discount toy stores, five variety stores, and five department ..
How the allocation effects are measured : Explain how these two effects are measured and why their sum must equal the total value-added return for the manager.

Reviews

Write a Review

Portfolio Management Questions & Answers

  Advantage of international portfolio diversification

Advantage of International portfolio diversification-Investing can be an effective way to save for retirement or other long-term goals such as college expenses or elderly care

  Calculate the discrete rate of return

The rate of return in each week for each stock and for the stock market index for the 27 weekly periods. Calculate the discrete rate of return as well as the continuously compounded rate of return. Calculate the arithmetic mean return and the geometr..

  How money market rate should respond to prevailing condition

How have money market rates changes since the beginning of the year and consider the existing economic conditions. Do you think money market rates will increase or decrease during the remainder of the year?

  Compute the expected return and standard deviation

Demonstrate that, in this scenario, the investor can form a portfolio with zero variance and find the appropriate weights associated with this portfolio and compute the expected return and standard deviation of the portfolio.

  How much tier 1 and tiear 2 capital is required

Suppose that the assets of a bank consist of $500 million of loans to BBB-rated corporations. The PD for the corporations is estimated as 0.3%.

  What are the required rates of return on stocks

what are the required rates of return on Stocks C and D and explain, and describe what would happen if the stock were not in equilibrium.

  What-if and goal-seeking analysis

What is a classifier and why is this problem a classification problem and in what essential way do the classifiers that you have used differ to one another?

  1 the stock of trudeau corporation went from 27 to 45 last

1 the stock of trudeau corporation went from 27 to 45 last year. the firm also paid 2 in dividends during the year.

  What was the net sales amount for 2012

We also know that in 2012, the corporation paid $18,077,052 in interest, and that Depreciation and amortization costs amounted to $11,821,040. Rhodes controls its cost so as to maintain EBITDA equal to 15% of sales. What was the net sales amount fo..

  Negative effect on the return of the fund

If the securities held by the BlackRock High Yield Bond Portfolio become less liquid this will have a negative effect on the return of the fund - the value of the BlackRock High Yield Bond Portfolio will most likely decline.

  Support a leadership impact ideology for tq implementation

Support a leadership impact ideology for TQ implementation by synthesizing the processes necessary to provide an organization with a TQ paradigm.

  How the allocation effects are measured

Explain how these two effects are measured and why their sum must equal the total value-added return for the manager.

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