Top 13 IAPM Measure Of Return Questions You Need To Solve

MEASURE OF RETURN

Illustration 1

            A portfolio has a market value of  40 lakh at the beginning of the quarter and a market value of  48 lakh at the end of the quarter. What is the return on this portfolio for the quarter?

Illustration 2

A portfolio has a market value of  100 lakh at the beginning of the month. The client deposited  5 lakh in the portfolio just before the end of the month with the portfolio manager. At the end of the month, the market value of the portfolio was  101 lakh. Find the return on this portfolio.

Illustration 3

The details about Mutual fund and Market Portfolio are as follows:

Compare the portfolio performance of Mutual Fund as well as market using Sharpe’s and Treynor’s Index.

Illustration 4

Compare portfolio performance using Sharpe and Treynor measures for the following portfolios:

The risk-free rate of return is 8%.

Illustration 5

Following information is given in respect of three Mutual Funds and Market:

The mean risk-free rate 6%. Calculate the Treynor’s measure and Sharpe’s measure and rank the portfolios.

Illustration 6
The actual results of the portfolios and market index during the past three years are given below:

You are required to rank as per Jensen’s measure of portfolio return.

Illustration 7

Three mutual funds have reported the following return and risk for last five years.

Compare the portfolio performance of Mutual Fund as well as market using Sharpe’s and Treynor’s Index. Which portfolio has better performance?

Illustration 8

            You are asked to analyse the two portfolios having the following characteristics:

The risk-free rate of return is 0.09 and the return on Market Portfolio is 0.14 with Standard Deviation is 0.5. Compute the appropriate measure of performance of these portfolios and comment on their respective performance. Use Sharpe’s Index and Treynor’s Index.

Illustration 9

Based on the below mentioned data decide whether the portfolio has out performed the market in terms of Treynor, Sharpe and Jensen benchmark evaluation measures.

Illustration 10

Consider the following information for three Mutual Funds X, Y and Z.

Risk-free Return is 10%.

Calculate Treynor’s Measure and Sharpe’s Measure and explain the difference.

Illustration 11

Calculate Jensen’s Measure.

Illustration 12

Consider the following information for three Mutual Funds X, Y and Z.

Risk-free Return is 10%

Calculate Treynor’s measure and Sharpe’s Measure and explain the difference.

( MU, BFM, Apr.2011)

Illustration 13

Solve:-                                                                                                                             

Calculate Jensen Measure and rank them.                                                                                                             

 For Solution/ Answer Please refer IAPM Textbook By Author Pawan Jhabak, Himalaya Publication.