Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97.
Year | Fund | Market | Risk-Free | |||
2015 | 21.20 | % | 40.50 | % | 2 | % |
2016 | 25.10 | 21.10 | 4 | |||
2017 | 14.00 | 14.20 | 2 | |||
2018 | 6.20 | 8.80 | 4 | |||
2019 | 2.16 | 5.20 | 3 | |||
Calculate Jensens alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started