Answered step by step
Verified Expert Solution
Question
1 Approved Answer
edit: this is all the info provided with the problem. Please solve as is. Please explain your choice. Over the past five years your equity
edit: this is all the info provided with the problem. Please solve as is.
Please explain your choice.
Over the past five years your equity portfolio has returned 6.5% p.a. with a beta of .7 and an annualized volatility of 10%. The equity market benchmark has returned 7.5% p.a. with an annualized volatility of 14%, while the risk free rate was 2% p.a. What was the approximate realized information ratio of your portfolio over this five-year period? A. .33 B. .38 C. .43 D. .48Step 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