Question
The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: Long Horn Market Portfolio Average return 19
The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio:
| Long Horn | Market Portfolio | |||
| Average return | 19 | % | 12 | % |
| Standard deviations of returns | 35 | % | 15 | % |
| Beta | 1.5 | 1.0 | ||
| Residual standard deviation | 3.0 | % | 0.0 | % |
The risk-free return during the sample period was 6%. Calculate the information ratio for Long Horn Stock Fund.
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Governance Of Financial Management
Authors: John Carver, Miriam Carver
1st Edition
0470392541, 9780470392546
