Investment Portfolio Assignment Example | Topics and Well Written Essays - 500 words

Investment Portfolio - Assignment ExampleConversely, the present Risk-Free Rate RFR provided by the US treasury Bill has been fixed at 0.182% for the year 2012. Moreover, the prevailing market rate of return Rmt = 5.24% (NYSE, 2012).While the company inductment is relatively profitable, the expected returns on assets on the risk taken by Dell remain quite volatile. This is reflected by the low Sharp ratio as well as Treynor ratio. The decision to invest in the open market is however, compensatory.It is quite evident that the portfolios of these six companies are performing differently. UPS has a high Sharp Ratio which means it is in a better chance of realizing high returns on its assets and investment. Besides, the Treynor ration of Wal-Mart indicates that the company is well positioned to enjoy good returns from the volatile risks taken by the company as argued by Sanwal (2007). Finally, is worth nothing that Ford and General Electric are relatively stable in the stock market wit h little volatility in the invested assets