As an analyst, you want to evaluate Equity Fund Portfolio consisting entirely of common stocks of banking sector in Nepal. You have collected the…
BBS Fundamentals of Investment · 2078 · Solved Question with Answer
As an analyst, you want to evaluate Equity Fund Portfolio consisting entirely of common stocks of banking sector in Nepal. You have collected the following information the portfolio and the market during the past ten years.
| Average annual rate of return | Standard deviation of return | Beta | |
| Equity Fund | 12% | 20% | 0.6 |
| NEPSE | 14 | 15 | 1 |
| T-bills | 6 |
a. Evaluate the Equity Fund by using Sharpe's, Treynor's and Jenson's portfolio performance measures.
b. Which of the performance measures did show that Equity Fund outperformed the market?