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Portfolio Performance of Daimler Chrysler & Citigroup

I need help getting started with this assignment. The two companies I am using are Daimler Chrysler and Citigroup.

A. Calculate your portfolio's performance using the Jensen index.
B. Describe the importance of these measures and interpret how your portfolio performed versus the market index.
C. Based on these indices discuss how you would revise your portfolio.

Please describe, using at least 150 words for each company. Please show any calculations using excel.

Solution Preview

The response address the queries posted in 1312 words with references.

//Before evaluating performance portfolio for any Company, we need to make a 'Comprehensive Analysis' of given Companies. So, firstly, we will describe about the 'Daimler Chrysler & Citigroup'.//

Daimler Chrysler

Daimler Chrysler is the largest car manufacturing company in the Germany and holds the thirteenth position all over the world. It also provides financial services to the customers. It was established in the year 1998 with the merger of Daimler-Benz of Germany and Chrysler Corporation of US. Headquarter of the company is situated in Stuttgart, Germany. The company deals in the manufacturing, development and distribution of automotive products. The financial segment of the Daimler provides financial and leasing services to its retail and wholesaler customers in automotive sector. It also manufactures trucks, buses. It is a well known company for it brand Mercedes-Benz (Daimler, 2008).


Citigroup Inc. was established in the year 1998 with the merger of Citicorp and Travelers Group. It is a guiding company in the field of financial services. It provides a wide range of the financial products and services to its corporate customers with its subsidiaries. The company runs its business in more than 100 countries in all over the world. The revenues of the Citigroup are the highest in the world. It is operating its business through 8527 branches in all over the world. The wealth management segment of the company provides financial planning, investment advices and brokerage services to its customers. Citigroup provides a wide range of the investment funds like private equity, real estate, hedge funds etc. (Citigroup, 2008)

//Above, we discussed about both the Companies and their Business Operations. Now, we will discuss about the 'Jensen Index' and its use along with significance in the form of performance portfolio.//


Jensen Index Formula

The Jensen index formula is used for the comparison of investment manager's performance. The Capital Assets Pricing Model (CAPM) is used for the measurement ...

Solution Summary

The response address the queries posted in 1312 words with references.