Question
Year Fund XYZ S&P 500 90d T-Bills 2000 -19.40% -13.40% 1.10% 2001 39.70% 29.70% 1.30% 2002 17.00% 17.00% 1.50% 2003 29.60% 21.60% 1.90% 2004 -10.40%
| Year | Fund XYZ | S&P 500 | 90d T-Bills |
| 2000 | -19.40% | -13.40% | 1.10% |
| 2001 | 39.70% | 29.70% | 1.30% |
| 2002 | 17.00% | 17.00% | 1.50% |
| 2003 | 29.60% | 21.60% | 1.90% |
| 2004 | -10.40% | -4.40% | 2.00% |
| 2005 | 23.10% | 22.10% | 1.60% |
| 2006 | 24.00% | 18.00% | 1.90% |
| 2007 | -1.20% | 0.80% | 1.20% |
| 2008 | -26.80% | -17.80% | 1.60% |
| 2009 | -3.00% | -5.00% | 1.00% |
| 2010 | -24.00% | -17.00% | 1.10% |
| 2011 | 32.70% | 22.70% | 1.10% |
| 2012 | -29.20% | -21.20% | 1.20% |
| 2013 | -10.60% | -3.60% | 1.70% |
| 2014 | -23.10% | -20.10% | 1.50% |
| 2015 | 16.10% | 11.10% | 1.00% |
| 2016 | 7.80% | 12.80% | 1.90% |
| 2017 | 23.60% | 15.60% | 1.20% |
| 2018 | 37.80% | 27.80% | 1.30% |
| 2019 | 9.60% | 13.60% | 1.70% |
| Total Return (p.a) | 3.20% | 4.14% | 1.44% |
a) Plot the risk premium of Fund XYZ vs. the market premium (10 pts)
b) What is Fund XYZs beta? Hint: use the slope function in Excel. (5 pts)
c) What is Fund XYZs alpha? Hint: use the intercept function in Excel. (5 pts)
Use absolute or relative cell references in all Excel calculations and formulas. Do not hard code variables in Excel.
PLEASE SHOW EXCEL FORMULAS
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School Finance Elections
Authors: Don E. Lifto, Bradford J. Senden, Daniel A. Domenech
2nd Edition
1607091488, 978-1607091486
