# The following portfolios are b

The following portfolios are being considered for investment.During the period under consideration, RFR = 0.07.
Portfolio Return Beta σi
P 0.17 1.00 0.06
Q 0.19 1.10 0.07
R 0.11 0.70 0.04
S 0.23 1.30 0.10
Market 0.14 1.00 0.05
Compute the Sharpe measure for each portfolio and the marketportfolio. Round your answers to three decimal places.
Portfolio Sharpe measure
P __________
Q __________
R __________
S __________
Market
Compute the Treynor measure for each portfolio and the marketportfolio. Round your answers to three decimal places.
Portfolio Treynor measure
P __________
Q __________
R __________
S __________
Market
Rank the portfolios using each measure, explaining the causefor any differences you find in the rankings.
Portfolio Rank (Sharpe measure) Rank (Treynor measure)
P ____ ____
Q ____ ____
R ____ ____
S ____ ____
Market ____ ____

Answer:

(A) Computation of Sharpe measure

Sharpe measure = (Return – Risk free return) / Standarddeviation

 portfolio calculation sharpe measure P (0.17-.007) / 0.6 1.667 Q (0.19 – 0.07) / 0.07 1.7143 R (0.11 – 0.07) / 0.04 1.000 S (0.23 – 0.07 ) /0.10 1.600 Market (0.14 – .07 ) / 0.05 1.400

(B) Computation of Treynor measure

Treynor’s measure = (Return – Risk free return) / Beta

 portfolio calculation Treynor measure P (0.17-.007) / 1.00 0.100 Q (0.19 – 0.07) / 1.10 0.109 R (0.11 – 0.07) / 0.70 0.057 S (0.23 – 0.07 ) / 1.30 0.123 Market (0.14 – .07 ) / 1.00 0.070

(C) Ranking of both measure

 portfolio sharpe measure Rank P 1.667 2 Q 1.7143 1 R 1.000 5 S 1.600 3 Market 1.400 4
 portfolio Treynor measure Rank P 0.100 3 Q 0.109 2 R 0.057 5 S 0.123 1 Market 0.070 4

As per sharpe measure best portfolio is Q and as per treynormeasure best portfolio is S.

##### "Our Prices Start at \$11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

## Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

• Dissertations and Thesis
• Essays
• All Assignments

• Research papers
• Terms Papers
• Online Classes