Problem: Portfolio Performance Evaluation
Your evaluation should include holding period returns for each stock and each portfolio. The Treynor measure should be reported for each stock and for the portfolio (use reported betas only - do not calculate beta).
You should also calculate other measures you think are appropriate. You should conduct a modified Performance Attribution Analysis. That is, tell me how well your chosen sectors performed relative others and how your stocks fared relative to their sector index.
The purpose of a portfolio evaluation is to establish how well the securities in your portfolio met their investment objective. A performance evaluation generally results in a re-balancing of the portfolio. This includes a change in the portfolio components or a change in the weights of individual components to more closely align the portfolio with its objectives. So, you would be selling stocks in the value portfolio that have significantly appreciated in price and replacing them with other value stocks.
Your evaluation should include a discussion of its success in meeting its objective, a discussion of why it did or did not meet its objective, and recommendations for required changes in the portfolio (no, you don't have to provide a list of replacement stocks).
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.
Attachment:- Performance-Evaluation-Template.rar