QUESTION #1:
Use the information below to compare the performance of your portfolio P with that of the stock market: Calculate the Sharpe ratio, the Treynor ratio, the α (Alpha), and the M2of your portfolio P.
Portfolio (P) Stock Market (M) T-bills
Return 10% 8% 0.5%
STD (returns) 20% 12% 0
Βeta 0. 8 1
QUESTION #2:
Select an indexed mutual fund of your choice (www.morningstar.com or go on the website of the company that manages the fund).Identify the fund both by its name and its ticker symbol.
• Precisely describe the fund's strategy and performance (Check the fund's summary prospectus)
• What stock index is the fund indexed again?
• Which sectors or markets is the fund invested in?
• What fees does the fund charge?
• What is the fund's return rate compared to either a relevant benchmark or to other funds with similar strategies?Year-to-date and over the last 5 years?
• In your opinion, is the manager of the mutual fund successfully indexing his fund against the selected stock index? Why or why not?
QUESTION #3:
Now select an actively managed mutual fund of your choice (www.morningstar.com)or go on the website of the company that manages the fund). Again, identify the fund both by its name and its ticker symbol.
• Precisely describe the fund's strategy and performance (Check the fund's summary prospectus)
• Which sectors or markets is the fund invested in?
• What fees does the fund charge?
• What is the fund's return rate compared to either a benchmark or other funds with similar strategies?Year-to-date and over the last 5 years
• In your opinion, is the manager of the mutual fund successful in achieving his goal? Why or why not?
• PLEASE ATTACH (OR LINK) THE INFORMATION USED TO ANSWER THESE QUESTIONS TO YOUR ASSIGNMENT.