At the beginning of the year, a fund's ex ante expected return is 13.4%, and the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At the beginning of the year, a fund's ex ante expected return is 13.4%, and the expected return on the market is 11.9%. The risk-free rate is 4.2%. At the end of the year, the fund's realized return is 12.8%, and the market return is 11.8%. The fund's beta is 0.5. a. What is the ex ante alpha? Number % Round your answer to two decimals b. What is the ex post alpha? Number % Round your answer to two decimals At the beginning of the year, a fund's ex ante expected return is 13.4%, and the expected return on the market is 11.9%. The risk-free rate is 4.2%. At the end of the year, the fund's realized return is 12.8%, and the market return is 11.8%. The fund's beta is 0.5. a. What is the ex ante alpha? Number % Round your answer to two decimals b. What is the ex post alpha? Number % Round your answer to two decimals
Expert Answer:
Answer rating: 100% (QA)
a To calculate the ex ante alpha we use the formula Ex Ante Alpha Ex Ante ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Study results revealed a confidence interval of mean difference that was -2.67 to -4.21 and an effect size that was large. What is the correct interpretation of these results? Question 7 options:...
-
Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Why is it important to have a defined project scope? Why is it important to make sure there is agreement about the scope? Is there anything in the "Why Should You Use the WBS?
-
Douglas and Son, Inc., uses the following process for its cash receipts: The company typically receives cash and check sales each day and places them in a single drawer. Each Friday, the cash clerk...
-
In Exercises 2948, evaluate the limit. lim h { 1 - cos 3h h
-
Repeat Problem 7.1 for the following schemes applied to the one-dimensional heat equation. a) Simple explicit scheme \((7.28)\) b) Simple implicit scheme \((7.32)\) c) Crank-Nicolson scheme (7.34)...
-
A liquid stream consisting of 12.5 mole% n-butane and the balance a heavy nonvolatile hydrocarbon is fed to the top of a stripping column, where it is contacted with an upward-flowing stream of...
-
Croy Incorporated has the following projected sales for the nextfive months:MonthSales in UnitsApril3,570May3,890June4,500July4,140August3,950Croy??s finished goods in 2 answers
-
Will your flight get you to your destination on time? The U.S. Bureau of Transportation Statistics reported the percentage of flights that were delayed each month from 1994 through October of 2013....
-
The receipt of cash from a customer in advance for work not yet performed was recorded as a revenue. This error would: a) Understate this year's revenue, and overstate next year's revenues b)...
-
Consider the following relational schema Employee (empno,name,office,age) Books(isbn,title,authors,publisher) Loan(empno, isbn,date) Write the following queries in relational algebra. a. Find the...
-
What is the estimated cost for a patient whose surgery has complications and who stays in the hospital 3 days and whose surgery requires a laparoscope? a x length of stay (measured in days), plus b x...
-
A bond of $100,000 is issued. The bond's contractual rate is 5%, the interest is paid semi-annually. The maturity is in 5 years. The market's interest rate is 6%. Calculate the total amount...
-
Consider an economy with the following characteristics: Average investor risk aversion is 4.1 Variance of the market portfolio is 84% Risk-free rate is 1.9 If the expected return on a stock is -3.5,...
-
Kang Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck. The new truck would cost $147,800. Because of the reduced maintenance...
-
1 . List the fundamental aspects of Planning a Project Budget? 2 . Define Hard and Soft Costs. 3 . List the various types of Soft Costs associated with a construction project. 4 . How are the Hard...
-
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
-
Sam Stevens is the trustee for the Hole Punchers Labor Union (HPLU). He has approached the investment management firm of IM Associates (IMA) to manage its $200 million bond portfolios. IMA assigned...
-
Assume that the DJIA closed at 10,875 one day recently, and the divisor was .12493117. a. What is the sum of the prices of the 30 stocks in the index, given this information? b. Assume that one stock...
-
Explain the following terms used with puts and calls: a. Strike price b. Naked option c. Premium d. Out-of-the-money option
-
1.5 MNEs and LIBOR. Most MNEs either take loans in eurocurrencies or issue eurobonds with a floating coupon rate tied to the LIBOR. Explain how MNES were affected by the LIBOR scandal.
-
1.4 Fragility of the Global Financial Marketplace. How has the global financial crisis exposed the fragility of assets and institutions of the global system?
-
1.7 Limitations of Comparative Advantage. The key to understanding most theories is what they say and what they don't. Name four or five key limitations to the theory of comparative advantage.
Study smarter with the SolutionInn App