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You are an investmet analyst. SEFAA P.T mutual fund engages you to analyse the risk associated with investments of the fund and advise its fund
You are an investmet analyst. SEFAA P.T mutual fund engages you to analyse the risk associated with investments of the fund and advise its fund manager accordingly. The value of assets currently held by the fund is GHS200,000. You gather the following historical rates of return on the portfolio for each quarter of the last 2 years.
Quarter | 1, Yr1 | 2, Yr1 | 3, Yr1 | 4, Yr1 | 1, Yr2 | 2, Yr2 | 3, Yr2 | 4, Yr2 |
HPR | 0.050 | 0.042 | 0.043 | 0.052 | 0.055 | 0.044 | 0.062 | 0.085 |
- What is the arithmetic average return?
- What is the expected return?
- What is the geometric average return?
- What is the standard deviation and variance of the distribution of returns?
- Suppose the annual simple interest rate on the GOG 91-day Treasury bill is 18 percent. Estimate the Sharpe ratio for the fund. What can say about the performance of the fund?
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