Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the returns for stock a and market portfolio are a

The returns for stock A and market portfolio are as follows: ...

60.1K

Verified Solution

Question

Finance

The returns for stock A and market portfolio are as follows:

Year

Stock A Return

Market portfolio return

2006

11%

9%

2007

10%

2%

2008

3%

1%

Market risk premium is 5% and risk-free rate is 2%.

  1. (6 MARKS) What are the beta of your asset A?
  2. (5 MARKS) What is your stock As Jensens alpha? Is stock A under- or over-valued?
  3. (3 MARKS) What is the Sharpe ratio of the stock A?
  4. (2 MARKS) What is the Treynor measure of performance evaluation?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Let V be a vector space, and suppose that U and W are both subspaces of...

Advance Math
Q

The endocrine system consists of several different glands. These include the pituitary, pineal, thyroid, and adrenal...

Medical Sciences
Q

Please I need The right answer for this question as soon as possible. A sag vertical curve...

Civil Engineering
Q

A groundwater contains the following constituents to be treated by the lime-soda process to the minimum...

Civil Engineering
Q

A ["prospective", OR "retrospective"] cohort study is carried out to investigate the association between occupational arsenic inhalation...

Statistics
Q

Analyses of drinking water samples for 100 homes in each of two different sections of a...

Basic Math
Q

Your grade in the class consists of 2 midterms 15% each, homework 10%, projects 5%,...

Basic Math
Q

Identify the explanatory variable and the response variable the number of hours a child spends...

Statistics
Q

Given the function f x 3x 10 find the net signed area between f x...

Calculus
Q

David wants to retire in 40 years. If he puts away $300 per quarter, at...

Accounting
Q

Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its...

Accounting
Q

please help with parts b and c ...

Accounting