Last few items Flashcards
Treynor Rp - Rf / Bp
(AVG. Rp and Rf)
- Defines risk using Beta or systematic risk.
- Measure of excess reutrn of portfolio to it’s BETA (SYSTEMATIC RISK OF THE ASSET, NOT THE MARKET)
- Higher the better
Rp = Risk portfolio
Rf = Risk free rate
Bp = Beta
Sharpe Rp - Rf / Op
(AVG. Rp and Rf)
- Defines risk using standard deviation.
- Ratio of excess portfolio return to its standard deviation
- meaningless unless compared to the market or other funds
- Higher the better
Rp = Risk portfolio
Rf = Risk free rate
Op = Standard Deviation
Jenson Alpha
- Calculates the portfolio return actually attained and subtracts it form what it should have returned based on the risk assumed in the portfolio.
- Positive number means that the portfolio’s return exceeded what was expected. Negative means it underperformed.
- Good for measuring portfolio managers performance
R^2
Greater than ____
- What ratio(s)
Greater than 60 indicates diversified portfolio
- Look for highest positive Alpha(Jensen). If not an option, then highest Treynor
- Measure of Volatility
- Contains systematic risk
R^2
Less Than ____
- What ratio(s)
Less than 60 means a non-diversified portfolio
- Look for highest Sharpe
- Measure of Variability
- Contains both Systematic and Unsystematic risk
Section 1 coverages (Homeowners) A, B, C, D.
A - Dwelling - 500k
B - Other Structures - 10% of A
C - Personal Property - 50% of A
D - Loss of use - 30% of A
Section 2 coverages (Personal Liability) E, F.
E - Personal Liability - 300k
F - Medical Payments - 5k each person max 15k each occurrence
HO-1
HO-1: Dwelling Basic
HO-2
Dwelling Broad
HO-3
Home Open - more comprehensive than HO-2 (broad coverage for personal property)
HO-4
Renters Personal prop and loss of use
HO-5
Home open and includes HO - 15 (open personal prop covered)
HO-6
Condo Owner
PAP - A
Liability
PAP - B
Medical Payments
PAP - C
Uninsured Motorist
PAP - D
Damage to your Auto
