Question
Consider the below table: Fund Average Return% p.a Standard Deviation % p.a. Beta Fund A 13 45 1.31 Fund B 10.7 19.2 1.1 Risk free
Consider the below table:
| Fund | Average Return% p.a | Standard Deviation % p.a. | Beta |
| Fund A | 13 | 45 | 1.31 |
| Fund B | 10.7 | 19.2 | 1.1 |
Risk free rate (Rr) : 4.2%
Market Return (Rm) : 9.6%
Using the above information from the above table, calculate the below ratios for both funds.
(i) Sharpe ratio
(ii) Treynor measure
(iiii) Jensen's alpha
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
