Question: 1. Use the relevant information below to evaluate Fund X using Fama's net selectivity measure. (10) Rx = 12% Bm= 1.0 Om=20% R = 10%.

1. Use the relevant information below to evaluate Fund X using

1. Use the relevant information below to evaluate Fund X using Fama's net selectivity measure. (10) Rx = 12% Bm= 1.0 Om=20% R = 10%. Bx = 1.1 RFR = 2% ox= 30% = (12-C 2 + ll( 10 - 2.7]) -[(30/20) - 1.1] (10-2) -9.19 or undervalued 7 2. Use the relevant information above to evaluate Fund X using Sharpe's measure. (10) (Rx - RFR) / 6x (12-a)/30 = 33 -5 3. Use the relevant information above to evaluate Fund X using Jensen's measure. (10) Ri - [RAR+B (RM-RER 12-[ 2 +1.1 (10-2)=(1.2)

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