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The Ubuntu fund is a recently formed and managed fund that has a beta of 1.2 and the residual standard deviation of 1%. The market
The Ubuntu fund is a recently formed and managed fund that has a beta of 1.2 and the residual standard deviation of 1%. The market index average return is 18% with the standard deviation and residual standard deviation of 21% and 0% respectively. The market risk premium is 0.12. The average market returns are 75% of the Ubuntu fund average returns and the standard deviation of the Ubuntu fund is 5% in excess of that of the market.
Calculate the information ratio for Ubuntu fund.
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