Question

Two investment advisers are comparing performance. One averaged
a 16.27% rate of return and the other a 20.51% rate of return.
However, the *β* of the first investor was 1.5, whereas that
of the second investor was 1.

Required: Suppose that the T-bill rate was 3% and the market return during the period was 15%. Aside from the issue of general movements in the market, outline the difference between the superior and inferior portfolios.

**Answer% Do not round intermediate calculations. Input
your answer as a percent rounded to 2 decimal places (for example:
28.31%).**

Two investment advisers are comparing performance. One averaged
a 16.27% rate of return and the other a 20.51% rate of return.
However, the *β* of the first investor was 1.5, whereas that
of the second investor was 1.

Required: Suppose that the T-bill rate was 3% and the market return during the period was 15%. Aside from the issue of general movements in the market, outline the difference between the superior and inferior portfolios.

**Answer% Do not round intermediate calculations. Input
your answer as a percent rounded to 2 decimal places (for example:
28.31%).**

Two investment advisers are comparing performance. One averaged
a 16.27% rate of return and the other a 20.51% rate of return.
However, the *β* of the first investor was 1.5, whereas that
of the second investor was 1.

Required: Suppose that the T-bill rate was 3% and the market return during the period was 15%. Aside from the issue of general movements in the market, outline the difference between the superior and inferior portfolios.

**Answer% Do not round intermediate calculations. Input
your answer as a percent rounded to 2 decimal places (for example:
28.31%).**

Answer #1

Two investment advisers are comparing performance. One averaged
a 16.27% rate of return and the other a 20.51% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

Two investment advisers are comparing performance. One averaged
a 16.27% rate of return and the other a 20.51% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
_____% Do not round intermediate calculations....

two investment advisers are comparing performance. One averaged
a 16.27% rate of return and the other a 20.51% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.

Two investment advisers are comparing performance. One averaged
a 15.79% rate of return and the other a 19.34% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

Two investment advisers are comparing performance. One
averaged a 15.14% rate of return and the other a 18.89% rate of
return. However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

Two investment advisers are comparing performance. One averaged
a 16.45% rate of return and the other a 20.98% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

Two investment advisers are comparing performance. One averaged
a 16.45% rate of return and the other a 19.78% rate of return.
However, the β of the first investor was 1.5, whereas that of the
second investor was 1. Required: Suppose that the T-bill rate was
3% and the market return during the period was 15%. Aside from the
issue of general movements in the market, outline the difference
between the superior and inferior portfolios. Answer % Do not round
intermediate...

Two investment advisers are comparing performance. One
averaged a 16.34% rate of return and the other a 20.69% rate of
return. However, the β of the first investor was 1.5,
whereas that of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the
market return during the period was 15%. Aside from the issue of
general movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

Two investment advisers are comparing performance. One averaged
a 15.46% rate of return and the other a 20.53% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

Two investment advisers are comparing performance. One averaged
a 16.45% rate of return and the other a 19.78% rate of return.
However, the β of the first investor was 1.5, whereas that
of the second investor was 1.
Required: Suppose that the T-bill rate was 3% and the market
return during the period was 15%. Aside from the issue of general
movements in the market, outline the difference between the
superior and inferior portfolios.
Answer% Do not round intermediate calculations....

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