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During the year just? ended, Anna? Schultz's portfolio, which has a beta of 0.98?, earned a...

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Finance

During the year just? ended, Anna? Schultz's portfolio, whichhas a beta of 0.98?, earned a return of 8.7%.

The? risk-free rate is currently 4.2%?, and the return on themarket portfolio during the year just ended was 9.4%.

A. Calculate? Treynor's measure for? Anna'sportfolio for the year just ended.

b. Compare the performance of? Anna's portfoliofound in part a to that of Stacey? Quant'sportfolio, which has a? Treynor's measure of 1.36%. Which portfolioperformed? better? Explain.

c. Calculate? Treynor's measure for the marketportfolio for the year just ended.

d. Use your findings in partsa and c to discuss theperformance of? Anna's portfolio relative to the market during theyear just ended.

a.The? Treynor's measure for? Anna's portfolio is ___?%. (Roundto two decimal? places.)

  1. ?Anna's portfolio_____

1.outperformed

2.underperformed   Stacy's with a TM of___

1. 4.59

2. 1.36

?% versus one of 1.36?%. (Select from the? drop-down menus.)

c.??The? Treynor's measure for the marketportfolio is ___?%. (Round to two decimal? places.)

d.??The market_____

?

1.outperformed

2. underperformed

?Anna's portfolio; its TM was______

?

1. 4.59

2. 1.36

3. 5.20

?%, compared to

?

1. 4.59

2. 1.36

3. 5.20

?% for her portfolio.???(Select from the? drop-down menus.)

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