hi, page 164 vol.4 question 11D - it asks whether the portfolio is an improvement to the current portfolio. what is the current portfolio mix?? I don’t see it in the body of the text, am I missing something? The answer explains that the overall portfolio IR increases by factor of 2.17. What does that mean?? help… these questions are quite brutal…
For answer to part C the IR is 0.67, the IR in answer to C is 1.45. When we divide 1.45/0.67 the result is 2.16. Hence they state that it increases by a factor of 2.17.
ahhhhh I get it! Thanks so much indike!