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Calculate performance for Apple, Juniper, Time warner

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A. Calculate your portfolio's performance using the Jensen indices.
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.
d. Be sure to attach your calculations to you paper, as well as properly cite the source(s) of the data that you used for your calculations. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

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The response addresses the queries posted in 562 Words and excel file, APA References

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a.

(Jensen Index, 2008).

Juniper Network Inc.

Jensen Index [Risk free return+ Beta*(Market risk premium- Risk free return)]
Market return 7.64
Risk Free Return 3.07
Beta 1.82

Portfolio Performance 11.3874
(Yahoo Finance).

Time Warner Inc.

Jensen Index [Risk free return+ Beta*(Market risk premium- Risk free return)]
Market return 7.64
Risk Free Return 3.07
Beta 1.13

Portfolio Performance 8.2341
(Google Finance).
Working Notes-
? Beta of all the companies is taken from Google Finance.
? It is assumed that the risk free return is equal to the rates of 5 year US Treasury bonds as given in Yahoo Finance.
? Return of one year from NASDAQ is taken as the Market return.

b.
Importance of Measures
The Jensen index is a very important tool to measure the performance of the portfolio. It includes different measures that are ...

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