Performance measure of your portfolio Fix a particular time interval for which you are interested in assessing the performance of your portfolio Find a market index as market portfolio Determine the portfolio beta B compute the average return of your portfolio(denoted Dy ar ) the average risk-free return ar le average benchmark return ar over the interval you are assessing the performance of your portfolioPerformance measure of your portfolio • Fix a particular time interval for which you are interested in assessing the performance of your portfolio; • Find a market index as market portfolio; • Determine the portfolio beta • compute the average return of your portfolio (denoted by ), the average risk-free return , the average benchmark return over the interval you are assessing the performance of your portfolio. β p p ar f ar arM