Q: Congratulations! Your portfolio returned 11% last year, 2%
Congratulations! Your portfolio returned 11% last year, 2% better than the market return of 9%. Your portfolio’s return had a standard deviation equal to 18%, and the risk-free rate is 3%. Calculate S...
See AnswerQ: Your portfolio has a beta equal to 1.3. It
Your portfolio has a beta equal to 1.3. It returned 12% last year. The market returned 10%; the risk-free rate is 2%. Calculate Treynor’s measure for your portfolio and the market. Did you earn a bett...
See AnswerQ: During the year just ended, Anna Schultz’s portfolio, which has
During the year just ended, Anna Schultz’s portfolio, which has a beta of 0.90, earned a return of 8.6%. The risk-free rate is currently 3.3%, and the return on the market portfolio during the year ju...
See AnswerQ: Your portfolio returned 13% last year, with a beta equal
Your portfolio returned 13% last year, with a beta equal to 1.5. The market return was 10%, and the risk-free rate 4%. Did you earn more or less than the required rate of return on your portfolio? (Us...
See AnswerQ: Referring to Problem 13.18, assume you are using a
Referring to Problem 13.18, assume you are using a constant-ratio plan with a rebalance trigger of speculative-to-conservative of 1.25. What action, if any, should you take in time period 2? Be specif...
See AnswerQ: John Reardon purchased 100 shares of Tomco Corporation in December 2016 at
John Reardon purchased 100 shares of Tomco Corporation in December 2016 at a total cost of $1,762. He held the shares for 15 months and then sold them, netting $2,500. During the period he held the st...
See AnswerQ: Jeff Krause purchased 1,000 shares of a speculative stock on
Jeff Krause purchased 1,000 shares of a speculative stock on January 2 for $2.00 per share. Six months later on July 1, he sold them for $9.50 per share. He uses an online broker that charges him $10...
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