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Part 4 (Excel): Consider now a market where three funds can be traded, and you want to understand which is the best investment for you,
Part 4 (Excel): Consider now a market where three funds can be traded, and you want to understand which is the best investment for you, based on all the performance measurement tools learned in class. The numbers are: Expected return Std Deviation Fund 1 Fund 2 Fund 3 Index Risk-free 10.50% 16.50% 35.50% 15.00% 1.25% 16.50% 23.50% 32.00% 18.50% Beta 0.10 1.10 0.50 Tracking Error 18.00% 21.00% 22.50% Write the solution in Section 4 of the report and answer the following questions as well: Which fund(s) outperform the benchmark (index)? Which portfolio offers the highest compensation for risk? Which fund has the most consistent performance over time? For this part you also have to submit the Excel file. Part 4 (Excel): Consider now a market where three funds can be traded, and you want to understand which is the best investment for you, based on all the performance measurement tools learned in class. The numbers are: Expected return Std Deviation Fund 1 Fund 2 Fund 3 Index Risk-free 10.50% 16.50% 35.50% 15.00% 1.25% 16.50% 23.50% 32.00% 18.50% Beta 0.10 1.10 0.50 Tracking Error 18.00% 21.00% 22.50% Write the solution in Section 4 of the report and answer the following questions as well: Which fund(s) outperform the benchmark (index)? Which portfolio offers the highest compensation for risk? Which fund has the most consistent performance over time? For this part you also have to submit the Excel file
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