Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 21, 2024

The following data is available relating to the performance of a hedge fund and its benchmark portfolio. The risk-free rate of return during the sample

The following data is available relating to the performance of a hedge fund and its benchmark portfolio. The risk-free rate of return during the sample period was 1%. What is the Information Ratio for the hedge fund?

	Hedge fund	Benchmark portfolio
Average return	10.29%	4.36%
Standard deviations of returns	23.85%	16.55%
Beta	1.75	0.95
Tracking errors	7.72%	7.72%

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

Recommended Textbook for

Finance For Development

Authors: Barbara Stallings

1st Edition

0815780850, 978-0815780854

More Books

Students also viewed these Finance questions

Question

9.3 John Stull, senior vice president of manufacturing, is seeking strong evidence to support his hope that new operating procedures have reduced the percentage of underfilled cereal packages from...

Answered: 1 week ago

Question

★★★★★

The chapter opener discusses the problems JC Penney encountered when it tried to cut back on the use of promotions and move to a fair and Square pricing and promotion model. Why do you think JCP...

Answered: 1 week ago

Question

★★★★★

The following data is available relating to the performance of a hedge fund and its benchmark portfolio. The risk-free rate of return during the sample period was 1%. What is the Information Ratio...

Answered: 1 week ago

Question

★★★★★

Reality bite based on Chapter 1 material (Quiz 1) Facebook, Inc., is a publicly held corporation and is frequently in the news. Such products as Facebook, Instagram, Messenger, WhatsApp, and Oculus...

Answered: 1 week ago

Question

★★★★★

Graff, Incorporated, has sales of $49,800, costs of $23,700,depreciation expense of $2,300, and interest expense of $1,800. Thetax rate is 22 percent. What is the operating cash flow, or OCF?Note:...

Answered: 1 week ago

Question

★★★★★

Activity Overview: In this graded activity, students will determine subnet scopes, assess routing metrics and paths, identify aspects of ACL's and Firewalls, and design an IPv4 address space. ...

Answered: 1 week ago

Question

★★★★★

Your problem statement assignment will include the following: A brief, yet clear and explicit description of the organization. A description of the problem being observed or experienced in the...

Answered: 1 week ago

Question

★★★★★

TODO: Test 2 - Create the GetArea() member method * ================================================== * Inside the Circle class within your Shape.cpp file, * create a new member method called...

Answered: 1 week ago

Question

★★★★★

Loomis inc received 90,000 on march 1 year 2 for work to be performed Over the next six months. The company which has a fiscal year end of June 30 records revenue evenly over the period of work...

Answered: 1 week ago

Question

★★★★★

1 What are the main factors in successful international joint ventures in China, and what are the main factors in failed joint ventures?

Answered: 1 week ago

Question

★★★★★

Autonomous and cross-functional work teams may only be appropriate in a lower power distance, low hierarchy culture, where autonomy of functional units is not protected, and which favours matrix...

Answered: 1 week ago

Question

★★★★★

2 Are organizational forms and work practices involving lateral and temporal flexibility in the European Union transferable to other regions across the globe?

Answered: 1 week ago

Previous Question Next Question