Use the following information for question (b).

Stephen Musimanga follows the shares in a broad market index and has made independent forecasts for 200 of them. His information coefficient (IC) is 0.06.

Victor Chidongo has made independent forecasts for 150 shares in the broad market index. His information coefficient (IC) is 0.07.

b) Which manager has the best performance as measured by the information ratio?

[25 marks] Question 1 In the table below, the characteristics of a mutual fund and a broad market index are provided. Mutual Fund Broad Market Index 18.47 2.27 22.33 4.09 P/E ratio P/B ratio Dividend yield EPS growth for 1 year EPS growth for 5 years Median market cap (5 billion) 2.2% 11.9% 6.0% 1.7% 22.7% 11.0% $8.5 $47.9 Industry Weight Basic industries Business services Consumer goods Consumer services Energy Financials Information technology Health Media Utilities 13% 7% 5% 9% 3% 37% 7% 2% 2% 15% 12% 5% 8% 8% 10% 21% 17% 13% 3% 3% Total 100% 100% a) Using only the data provided, determine the style of the mutual fund. No calculations are required. (4)