Are you happy with the risk-adjusted portfolio performance

Assignment Help Financial Management

Reference no: EM132069942

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: EM132069942

Questions Cloud

What is the most expensive car that he can afford : A recent engineering graduate intends to purchase a new car. He plans to pay $2000 down and to finance the balance over a 4-year period.

What annual amount must she deposit : A recent college graduate has decided on a goal of having $1,000,000 at retirement, and believes that she can earn a return of 12% by depositing.

Find the value of the growing dividends : If the cost of equity is 3.3%, what is the value of the growing dividends from year 1 to 10 at time year 0?

What is the present value of your windfall : 63 years from now What is the present value of your windfall if the appropriate discount rate is 9 percent?

Are you happy with the risk-adjusted portfolio performance : Are you happy with the risk-adjusted portfolio performance? Explain fully. What is the portfolio's Jensen Measure?

Managing marketing in a changing world : In the first three weeks of this module, you considered a number of issues that are important to marketing as an organisational function

Estimate the external financing needed : Debt and equity are not. A dividend of $1,800 was paid, and the company wishes to maintain a constant payout ratio.

What is azile method of product development : What is azile method of Product development? How to conduct SWOT analysis for a new product. what is Quality Function Deployment.

What items are of interest to you as a student : If you only receive income from an employer, reported on a W-2, what can you do to manage AGI?

User Account

All Pages