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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 0.89.
Year | Fund | Market | Risk-Free |
2011 | 17.60 | 34.50 | 2 |
2012 | 25.1 | 20.5 | 4 |
2013 | 13.4 | 12.4 | 2 |
2014 | 6.6 | 8.4 | 5 |
2015 | 1.80 | 4.20 | 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.)
**Already found that Jensen's alpha = 3.72%**
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