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.
Please note that we don't do students' assignments for them. Be sure to go back into your textbook or use a good search engine. http://hanlib.sou.edu/searchtools/
Once YOU have attempted to complete YOUR assignment, please re-post and let us know what you think. Then someone here will be happy to comment on your thinking.