Question
Use the following data to answer the question regarding the performance of Guardian Stock Fund and the market portfolio. The risk-free return during the sample
Use the following data to answer the question regarding the performance of Guardian Stock Fund and the market portfolio. The risk-free return during the sample period was 5%.
| Guardian | Market Portfolio | |||||||
| Average return | 14 | % | 10 | % | ||||
| Standard deviation of returns | 27 | % | 21 | % | ||||
| Beta | 1.5 | 1 | ||||||
| Residual standard deviation | 4 | % | 0 | % | ||||
Calculate the information ratio measure of performance for Guardian Stock Fund. (Round your answer to 2 decimal places. Do not round intermediate calculations.)
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
