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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 0.97.
Year | Fund | Market | Risk-Free |
---|---|---|---|
2018 | 15.20% | 30.50% | 3% |
2019 | 25.10 | 20.10 | 4 |
2020 | 13.00 | 11.20 | 2 |
2021 | 7.40 | 8.00 | 5 |
2022 | 1.56 | 3.20 | 2 |
Calculate Jensens alpha for the fund, as well as its information ratio.
Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.
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