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* writing contor Tutoring Center > Events Calendar IT Services Help M Gmail YouTube Re CENGAGE MINDTAP a Search this course Chapter 18: Assignment -

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* writing contor Tutoring Center > Events Calendar IT Services Help M Gmail YouTube Re CENGAGE MINDTAP a Search this course Chapter 18: Assignment - Evaluation of Portfolio Performance You have been assigned the task of comparing the investment performance of five different pension fund managers. After gathering 60 months of excess returns (e. returns in excess of the monthly risk-free rate) on each fund as well as the monthly excess returns on the entire stock market, you perform the regressions of the form (Rand-FR) - RFR) + You have prepared the following summary of the data with the standard errors for each of the coefficients inted in parentheses REGRESSION DATA (RIUNORFR) Portfolio R Mean ABC 0.462 0.500 66.1 0.930% 0.8034 (0.18) (0.09) DEF 0.288 0.790 922 0.885 0.885 (0.14 (0.14) GHI 0.196 1.054 918 1.010 1.192 (0.11) (0.12) . 0.060 0.654 953 0.480 0.254 (0.10) (0.11) MNO 0.365 0.749 653 0.950 1,054 (0.21) (0-10) a. Which fund had the highest degree of diversification over the sample period? How is diversification measured in the statistical framework had the highest degree of diversification over the sample period. Eelis a measure of diversification D. Rank these funds' performance according to the Sharpe, Treynor, and Jensen measures Portfolio Rank (Sharpe measure) Rank (Treyner measure) Rank (Jensen measure) ABC Elect CV DEF GHI Select ce JRL MNO CGV Since you know that according to the CAPM the intercept of these regressions .,alpha) should be zero, this content can be used as a measure of the value added provided by the investment manager which funds have statistically outperformed and underperformed the marketing a two-sided 95% confidence interval (Note The relevant t-statistic using 60 observations 2.00) Select have/has statistically outperformed the market at a 95% level of confidence Select have/has statistically underperformed the market at a 95% level of confidence

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