1. A Fund Manager Is Responsible For Two Portfolios. Details Relating To Easy Essay Help

1. A fund manager is responsible for two portfolios. Details relating to these two portfolios, the market return and the risk-free rate are provided below.

Portfolio A
Portfolio B
Market
Risk-Free
Return
12.75%
8.85%
9.58%
4.3%
σ
38%
22%
28%
N/A
β
1.4
0.8
1
N/A
σ(e)
2%
5%
N/A
N/A
Use the table above to calculate the following for each portfolio and identify which portfolio performed best based on each metric: M2 Measure; Treynor Measure; Jensen’s Alpha and Information Ratio.