S. Mukherji. Optimal Portfolios for Different Holding Periods and Target
Returns, Financial Services Review, 12 (2003) 61-71.
P. Swisher and G. Kasten. Post-Modern Portfolio Theory, Journal of
Financial Planning, September
BUFN204 Week9 *important for exam
Comparison Sharpe v Treynor
The Sharpe measure uses the standard deviation of returns as a measure of
total risk, whereas Treynor employs betta (systematic risk). The Sharpe
measure, therefore, evaluates the portfolio man
CHAPTER 1 i THE lNVESTMENT ENVIRONMENT . 21
WhatVou Should Know ' w
@ Describe the steps in investing, review fundamental tax diversification, p. 12
considerations, and discuss investing over the life cycle. Investing investment goals, p. 11
should be dri
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) When a company, working with an underwriter, offers the investing public a certain number of 1)
shares at a certain price, the company is m
A twoasset portfolio has the following characteristics:
Expected Return Weighting Standard Deviation
Asset A 9% 40% 4%
Asset B 11% 60% 6%
What is the expected return on this twoasset portfolio?
wa =40% wb =60% I; 29% I; 211%
E(Rp) : Zn: wiE