T his booklet is valid for

T HIS BOOKLET IS VALID FOR

SEMESTER TWO OF 2020-2021 ACADEMIC YEAR

TAKE HOME ANSWER BOOKLET
This script will be marked anonymously. Please complete STUDENT / EXAMINATION DETAILS. Please ensure you upload the answer booklet prior to the end time of the examination. Any submissions not uploaded after the end time will not be accepted.
STUDENT / TAKE HOME EXAMINATION DETAILS
University of Westminster Student ID Number:	WIUT Student ID Number:
Course:	Date:
Module Code:	Module Title:

QUESTIONS ANSWERED
Question Number	Internal Examiner	Internal Examiner	External Examiner	Agreed Marks
Total
Initials

Summary of answers (just an example)

Questions	Answers	Questions	Answers
1.1	X	7.1	X
1.2	Y	7.2	Y
1.3	Z	7.3	Z
…	…	…	…

After getting highest expected return equal to 10.14% manager 1 showed best result among other managers. This fact is also established by three factors Sharpe ratio, m-squared and Jensen's alpha. In order to check performance, we can use m-squared and Sharpe ratio when portfolio is inconstant. If portfolio is constant it can be tested by the market risk only which is developed by the Treynor ratio and Jensen's alpha. After achieving these estimators with different results, it can be proper to choose manager 1 with high expected return thorough the two estimators. The rankings of the managers are also given in the table ands easy to reveal that overall ranking is similar to their numerical order.

Beta coefficient is used to measure the risk range of the stock and its market volatility in the market. According to the rules market has an average beta coefficient equaled to 1 and securities in the portfolio is determined through this average. When the securities in the portfolio has beta value under the 1 systematic risk of the stocks is considered less risky while beta values higher than 1 reveals high risk of the stock. Through these measures I can say that Alpha company has less risky stocks (beta=0.5) and Beta company has more risky stocks (beta=1.5) compared with market average.

Section A

Question 1

1.1

Workings

1.2

Workings

1.3

Workings

(and so on)

30-Dec-20 7/1/2021 7:23 a7/p7