Transcribed Image Text
Chee? Chew's portfolio has a beta of 1.29 and earned a return of13.8 % during the year just ended. The? risk-free rate is currently4.7 % . The return on the market portfolio during the year justended was 10.7 % .a.Calculate? Jensen's measure? (Jensen's alpha) for? Chee'sportfolio for the year just ended.b.Compare the performance of? Chee's portfolio found in part ato that of Carri? Uhl's portfolio, which has a? Jensen's measure ofnegative 0.17 . Which portfolio performed? better? Explain.c.Use your findings in part a to discuss the performance of?Chee's portfolio during the period just ended.a.The? Jensen's measure? (Jensen's alpha) for? Chee's portfoliois nothing . ?(Round to two decimal? places.)b.? Chee's portfolio, with a JM of ? 1.36 -0.17 ?, outperformed?Carri's portfolio, with a JM of negative 0.17 . A ? positivenegative JM indicates that the ? actual required return exceeds the? actual required return. A ? positive negative return on aportfolio means that it did not earn its ? actual requiredreturn.??
Other questions asked by students
Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue...
2) (40 pts) An alligator that has been warming in the sun swims into cold water....
tiple choice questions on this quiz tion 2 n of the following scenarios are most...
White light is used to illuminate the two slits in Young s experiment The separation...
Splish Co. invested $920,000 in Blossom Co. for 25% of its outstanding...
Contribution Margin Willie Company sells 36,000 units at $37 per unit. Variable costs are $31.08...
A firm in Illinois is in dispute over a contract with a firm in Utah....