ProIndex’s Beta Assignment | Homework For You

1. Using the data in the “Thompson Asset Management”, prepare a short report evaluating the performance of the ProIndex fund during years 2009-2013. Your evaluation should be based on a comparison with the S&P 500 index. You should use some (but, most likely, not all) of the performance measures in Exhibit 4. Comment on which performance measure(s), in your opinion, is the most appropriate for different types of investors (for example, you could take two examples: a university endowment with a diversified portfolio managed by multiple firms; and an individual who is interested in entrusting their entire portfolio to TAM.)Homework For You

Don't use plagiarized sources. Get Your Assignment on
ProIndex’s Beta Assignment | Homework For You
Just from $13/Page
Order Now

Compute ProIndex’s beta. Given ProIndex’s investing style, do you think a single beta estimate does a good job of summarizing the fund’s risk profile?

Exhibit 2: ProIndex and Market Return Data
Year ProIndex S&P 500
2009 56.48% 23.45%
2010 14.16% 12.78%
2011 11.43% 0.00%
2012 17.20% 13.41%
2013 72.78% 29.60%
Cumulative, 2009-2013 303.0601% 104.63%
Daily Standard Deviation 1.91% 1.23%
Annualized Standard Deviation 30.32% 19.47%
annualized HPR for S&P500 20.93%
beta 1.014
annualized HPR 60.612%
correlation 0.000637734
sharpe ratio 1.990987386
Treynor ratio 0.595286163
Jensen’s Alpha 0.393956655
Exhibit 4: Portfolio Performance Measures
Statistic Explanation
Holding Period Return (HPR) Return to the portfolio over a specific period of time, calculated as (ending value – beginning value) / (beginning value).
Annualized Return Return expressed in annual terms. Daily HPR are converted to annual HPR by multiplying by 252 (trading days per year).
Standard Deviation Usual statistical calculation for standard deviation.
Annualized Standard Deviation Standard deviation expressed in annual terms. Daily standard deviations are converted to annual standard deviations by multiplying by the square root of 252.
Correlation Usual statistical calculation for Pearson correlation coefficient.
Beta A relative risk measure, calculated by regressing a portfolio’s returns against the market returns. Also calculated by dividing the covariance between the portfolio and the market by the variance of the market.
Sharpe Ratio Measure of a portfolio’s return per unit of risk. Calculated as the (Portfolio Return – Risk-free Rate) / (Standard Deviation of Returns).
Treynor Ratio Measure of a portfolio’s return per unit of risk. Calculated as the (Portfolio Return – Risk-free Rate) / (Portfolio Beta).
Jensen’s Alpha A measure of a portfolio’s return above its required return based on the Capital Asset Pricing Model. Calculated as (Portfolio Return – Risk-free Rate) – Portfolio Beta x (Market Return – Risk-free Rate).
Daily Tracking Error Excess return of the portfolio over a benchmark portfolio. Calculated as the standard deviation of the (Daily Portfolio Return – Daily Benchmark Return).
Annualized Tracking Error Tracking error expressed in annual terms. Daily tracking errors are converted to annual tracking errors by multiplying by the square root of 252.
Information Ratio Measure of a portfolio’s return per unit of risk. Calculated as the (Annual Portfolio Return – Annual Benchmark Return) / (Annual Tracking Error).

Get Finance homework help today

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.


Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.


Admission and Business Papers

With, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.


Editing and Proofreading has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.


Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.