Question
You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate. Year Papa Fund
You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate.
| Year | Papa Fund | Mama Fund | Market | Risk-Free | ||||
| 2015 | 12.6% | 22.6% | 24.5% | 1% | ||||
| 2016 | 25.4 |
| 18.5 |
| 19.5 |
| 3 |
|
| 2017 | 8.5 |
| 9.2 |
| 9.4 |
| 2 |
|
| 2018 | 15.5 |
| 8.5 |
| 7.6 |
| 4 |
|
| 2019 | 2.6 |
| 1.2 |
| 2.2 |
| 2 |
|
a. Calculate the Sharpe ratio, Treynor ratio, Jensens alpha, information ratio, and R-squared for both funds.
b. What do you infer from the results in a?
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Personal Finance
Authors: Jeff Madura
6th Edition
0134082915, 9780134082912
