Exam 19: Performance Evaluation

A single security should be evaluated using the _____ measure.

If a portfolio earned 5%, 45%, 20%, and 10% over the last four years, the geometric mean return per year is

The two mutual funds used in the text example are

If the average realized return of a portfolio is 20% per year, the standard deviation of returns is 30%, the portfolio beta is 1.5, the average return of Treasury bills over the same period is 5% per year, and the average return on the market is 15% per year, the Treynor measure is

If a portfolio earned 5%, 45%, 20%, and 10% over the last four years, the arithmetic mean return per year is