Consider the following information about the Brakker Fund, a managed fund operating in Australia. It invests primarily
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Consider the following information about the Brakker Fund, a managed fund operating in Australia. It invests primarily in the Australian stock market.
2016 Fund Return: 15%
Return Variance: 0.0576
Risk Free Rate: 1.5%
Beta: 1.5
ASX 200 Index Return: 11.45%
ASX 200 Index St. Deviation: 12.60%
a. What is this Fund’s Sharpe Index?
b. What is the Sharpe Index of the ASX 200 Index?
c. What is the alpha of the Brakker Fund and of the ASX 200 Index?
d. Did the Brakker Fund or the ASX 200 Index earn the highest return?
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