this assignment is linked to the previous one you helped with me – I will includ

this assignment is linked to the previous one you helped with me – I
will include the previous answers in this question as they may help
with the second part.
Purpose
The purpose of this task
is to give you the opportunity to evaluate the performance of the
portfolio you proposed in Part 1 of the Assignment.
Task details
Evaluate the performance of your portfolio over the period from 31 March 2023 to 12 May 2023.
Instructions
You have been provided with an updated Assignment Data file which contains:
Closing prices for all stocks and ETFs as at 12 May 2023
Betas for all stocks and ETFs
The annual risk-free rate of return (10-year Australian Treasury Bond yield) and the rate applicable to this 42-day period
The return and standard deviation of returns on the ASX 200 for this 42-day period
The annual interest rate for cash (1-month BBSW) and the rate applicable to this 42-day period
My standard deviation is 0.50% – the professor calculated it for me from previous answers
You are required to carry out the following steps to complete:
Calculate the beta of your portfolio based on closing prices as at 31 March 2023. (Use a beta of 1 for Bitcoin and 0 for cash.)
Calculate the value of your portfolio as at 12 May 2023.
Calculate
the return on your portfolio. (This will be based on the closing value
of stocks, ETFs and Bitcoin. Any cash will be assumed to have earned
interest equal to the 1-month BBSW, which has been provided. Multiply
the opening value of cash by (1 + the 42-day interest rate). For
simplicity, ignore dividends received during this period.)
Calculate the four measures of portfolio performance (Sharpe ratio, Treynor ratio, Jensen’s Alpha and the M2 measure).
Assuming
that your client has invested in the portfolio you proposed in Part 1,
using the opening prices as at 31 March 2023, write a report to your
client explaining how the portfolio has performed.
The report for your client should include:
The
opening and closing value of the portfolio, including a breakdown of
the value of each stock or ETF (or Bitcoin or cash) at the start and end
of the 42-day period.
The total return and standard deviation
of return over the 42-day period you are reporting on, and the
annualised return and standard deviation (divide by 42 and multiply by
365).
The Sharpe ratio, Treynor ratio, Jensen’s alpha and M2 measure for the 42-day period. Your report should briefly
explain to your client how these different values can be used to
evaluate performance. You should show your workings in an appendix.
A determination of whether the portfolio has underperformed or outperformed the market, and why.
A
summary of the reasons why you think the portfolio has underperformed
or overperformed. This summary should include discussion of any
significant events or any macroeconomic, industry-specific or
company-specific factors that you are aware of that may have affected
the performance of your portfolio.
500 words
(The reference list is not included in the word count but in-text citations are; Excludes figures and calculations)