The Advtech Group is a JSE listed company in South Africa. Advtech operates within the education and
recruitment industries in South Africa and the rest of Africa.JSE 100 is an index on the Johannesburg Stock
Exchange, Advtech is a constituent of JSE100 its weight in the index is given in table 1 above.
1.1 Consider an investor with a portfolio consisting only of Advtech shares. The Treasury bill rate in 2014 was
3.06% in South Africa. Using dividend yield as (returns). Calculate the Sharpe ratio for Advtech. (20)
1.2 Calculate the capital gains for an investor who bought Advtech Shares on 2 January 2014 and held the
shares until 31 December 2014 (5)
1.3 Consider an investor with a portfolio consisting only of Advtech shares. Calculate the Treynor ratio given
that the beta of Advtech is 0.8 (10)
1.4 Consider an investor with a portfolio consisting only of Advtech shares Given that the J100 market index
was 3%. Calculate the Jensen alpha given that Advtech beta is 0. (10)
1.5 Calculate the expected return of a portfolio consisting of 40% treasury bills and 60% Advtech shares. Given
that the Treasury bill rate is 3.06%.
Answers
Answer:
The Advtech Group is a JSE listed company in South Africa. Advtech operates within the education and
recruitment industries in South Africa and the rest of Africa.JSE 100 is an index on the Johannesburg Stock
Exchange, Advtech is a constituent of JSE100 its weight in the index is given in table 1 above.
1.1 Consider an investor with a portfolio consisting only of Advtech shares. The Treasury bill rate in 2014 was
3.06% in South Africa. Using dividend yield as (returns). Calculate the Sharpe ratio for Advtech. (20)
1.2 Calculate the capital gains for an investor who bought Advtech Shares on 2 January 2014 and held the
shares until 31 December 2014 (5)
1.3 Consider an investor with a portfolio consisting only of Advtech shares. Calculate the Treynor ratio given
that the beta of Advtech is 0.8 (10)
1.4 Consider an investor with a portfolio consisting only of Advtech shares Given that the J100 market index
was 3%. Calculate the Jensen alpha given that Advtech beta is 0. (10)
1.5 Calculate the expected return of a portfolio consisting of 40% treasury bills and 60% Advtech shares. Given
that the Treasury bill rate is 3.06%.
Explanation:
The Advtech Group is a JSE listed company in South Africa. Advtech operates within the education and
recruitment industries in South Africa and the rest of Africa.JSE 100 is an index on the Johannesburg Stock
Exchange, Advtech is a constituent of JSE100 its weight in the index is given in table 1 above.
1.1 Consider an investor with a portfolio consisting only of Advtech shares. The Treasury bill rate in 2014 was
3.06% in South Africa. Using dividend yield as (returns). Calculate the Sharpe ratio for Advtech. (20)
1.2 Calculate the capital gains for an investor who bought Advtech Shares on 2 January 2014 and held the
shares until 31 December 2014 (5)
1.3 Consider an investor with a portfolio consisting only of Advtech shares. Calculate the Treynor ratio given
that the beta of Advtech is 0.8 (10)
1.4 Consider an investor with a portfolio consisting only of Advtech shares Given that the J100 market index
was 3%. Calculate the Jensen alpha given that Advtech beta is 0. (10)
1.5 Calculate the expected return of a portfolio consisting of 40% treasury bills and 60% Advtech shares. Given
that the Treasury bill rate is 3.06%.
Answer:
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Explanation:
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