During the year just ended, Anna Schultz's portfolio, which has a beta of 0.97, earned a return of 8.3%. The risk-free rate is currently 4.1%, and the return on the market portfolio during the year just ended was 8.9%.a. Calculate Treynor's measure for Anna's portfolio for the year just ended.b. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.29%. Which portfolio performed better? Explain.c. Calculate Treynor's measure for the market portfolio for the year just ended.d. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended.a. The Treynor's measure for Anna's portfolio is %. (Round to two decimal places.)b. Anna's portfolio outperformedStacy's with a TM ofV% versus one of 1.29%. (Select from the drop-down menus.)c. The Treynor's measure for the market portfolio is %. (Round to two decimal places.)d. The marketV Anna's portfolio; its TM was%, compared toV % for her portfolio. (Select from the drop-down menus.)

Treynor's Ratio = (Average rate of portfolio-risk free rate)/Beta of the portfolio

Answered: During the year just ended, Anna…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 5P

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