![JENSEN’S MEASURE
Jensen’s Alpha = Total Portfolio Return – Risk-Free Rate –
[Portfolio Beta × (Market Return – Risk-Free Rate)]](https://image.slidesharecdn.com/performanceevalution-150918062052-lva1-app6892/85/Performance-evalution-of-portfolio-13-320.jpg)
Performance evalution of portfolio
- 1. PERFORMANCE EVALUATION OF PORTFOLIO MADE BY: PORTFOLIO CRUNCHERS
- 2. PORTFOLIO EVALUATION process of comparing the return earned refers to the evaluation of the performance
- 4. A GROUPING OF FINANCIAL ASSETS SUCH AS STOCKS, BONDS AND CASH EQUIVALENTS, AS WELL AS THEIR MUTUAL, EXCHANGE-TRADED AND CLOSED-FUND COUNTERPARTS. PORTFOLIOS ARE HELD DIRECTLY BY INVESTORS AND/OR MANAGED BY FINANCIAL PROFESSIONALS. MEANING OF PORTFOLIO
- 5. FACTORS AFFECTING PERFORMANCE MEASURE RETURN RISK MARKETBILITY LIQUIDITY DIVERSIFICATION
- 7. BIG THREE PVT. LTD
- 8. BIG THREE PVT.LTD PORTFOLIO AVG.RETURN RATINGS COLGATE 15% ***** COCA-COLA 12% **** MORGAN 10% *** BUSCH 12% **** -A RATINGAGENCY * WE PROVIDE RATINGS ON OUR ASSUMPTIONS ON WEEKLY BASIS
- 12. SHARPE’S MEASURE
- 13. JENSEN’S MEASURE Jensen’s Alpha = Total Portfolio Return – Risk-Free Rate – [Portfolio Beta × (Market Return – Risk-Free Rate)]
- 14. EFFICIENT MARKET HYPOTHESIS Efficient-market hypothesis (EMH) states that stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.
- 15. 2 MIN’S MAGGI FEVER!
- 16. DEMAND FOR MAGGI
- 17. ASSUMPTIONS OF EMH INFORMATION TRANSACTION COST BORROW & LEND LARGE NO. OF INVESTOR’S TRANSPARENCY REFLECTION OF PRICE NON INFLUENTIAL
- 18. RANDOM WALK THEORY Random walk theory is based on independent behavior of new prices of information that are received.
- 19. ARBITRAGE PRICING THEORY Arbitrage means, the simultaneous buying and selling of securities. This theory given by S.ROSS. says that Each security is linked with multiple factor. Returns gets influenced by several logical factors like GDP, national income, personal income etc. Each security can earn risk free economic profit if logically buying and selling of securities is done The profit rises when an investor construct a zero investment portfolio with sure profit. HOW DOES ARBITRAGE OPPORTUNITY ARISES? When any investor takes quick opportunity of buying and selling of securities in multiple market while earning sure profits.
- 20. QUESTIONS?
- 21. SPECIAL THANKS TO SHARDUL SIR FOR GIVING US OPPORTUNITY TO PRESENT .WE HAVE TRIED OUR BEST TO GRAB THIS OPPORTUNITY GIVEN BY YOU WITH ALL OUR DEDICATION AND EFFORTS. MADE BY: SHRUTI KUSUM DAYA RUCHIKA ASHOK JAGJIT ANKIT SUDESH ABBAS JUNAID
- 22. THANK YOU.