During the year just ended, Anna Schultz's portfolio, which has a beta of 0.96, earned a return of 8.2%. The risk-free rate is currently 3.6%, 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 1.25%. 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.)

The above answer can be explained as under - Treynor's measure can be calculated as - Treynor's…

Answered: During the year just ended, Anna…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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