Two brokers at morgan stanley

Assignment Help Business Economics

Reference no: EM13802698

Two brokers at Morgan Stanley: Bob and Simon are comparing their performance last year. Bob averaged a 19% rate of return on his portfolio, while Simon averaged a 16% rate of return. The beta for Bob’s portfolio is 1.5 while the beta for Simon’s portfolio is 1.1. Assume that the return on the market is 14% and the risk-free rate is 6%. Bob boasts to Simon that since his portfolio earned a higher return than Simon’s, Bob did a better job managing his portfolio. Is Bob correct? Explain your answer.

Reference no: EM13802698

Questions Cloud

Write short guide to writing about film by timothy corrigan : Write a Short Guide to Writing about Film by Timothy Corrigan, and Carl Freedman's essay "The End of Work: From Double Indemnity toBody Heat".

Based on the example in the team member guide what addition : Answer the below two questions with the right answers. 1. In a seller's market even pathetic products are snapped up by desperate buyers because... a. first shift capacity is just sufficient to meet demand b. first shift capacity plus second shift c..

Research two human activities : Using two credible sources, research two human activities that have a positive impact on the environment. Explain the role of these activities, comparing the adaptation versus mitigating approaches to manage those environmental issues.

Homologous structures : 1, which of the following are NOt homologous structures? a, ovaries ; testes b,labia majora; scrotum c, clitoris; spongy urethra

Two brokers at morgan stanley : Two brokers at Morgan Stanley: Bob and Simon are comparing their performance last year. Bob averaged a 19% rate of return on his portfolio, while Simon averaged a 16% rate of return. The beta for Bob’s portfolio is 1.5 while the beta for Simon’s port..

Modify the code to change the variables : Quickly modify the code to change the variables if needed to the correct data type. Comment the code and indicate what the line or function performs

What are the incremental earnings associated with the advert : Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5 million on TV, radio, and print advertising this year for the campaign. The ads are expected to boost sal..

Make a reasonable guess about the age : 1. Visit the parking lot of a public place, such as your university, a hotel, a shopping mall, yourworkplace, and your building. At the parking lot, count and record 10 cars and the make, model, andyear (for example, Honda Civic, 2008). If you do not..

Technological violations of natural : According to the textbook, all of the following are true about a person's possible opposition to technological violations of natural orders EXCEPT:

User Account

All Pages