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The following data are available relating to the performance of Everlasting Equity Fund and the market proxy: Average Return for Everlasting Market =24% Average Return
The following data are available relating to the performance of Everlasting Equity Fund and the market proxy:
Average Return for Everlasting Market =24%
Average Return for the market portfolio=15%
Standard Deviation for Everlasting =20%
Beta for everlasting =0.8
standard deviation for the market = 16%
The risk-free return during the sample period was 6%.
Correlation between Everlasting return and market return is 0.96
Calculate the M square ratio for Everlasting
b. BRIEFLy discuss the differences in writing covered and naked calls.
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