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Analyze the following portfolios performance using Jensen index, Treynor index and Sharpe index versus the market:
Observed Rate of Return Beta (β) Residual Variance
Magic fund 15% 1.5 0.02
Shanti fund 10% 0.5 0.00
Risk-free rate of interest is 50%, return on the market portfolio is 12% and standard deviation is 0.04.
1 answer
1 answer