Question: A mutual fund's average return for the year was 16.2% with a standard deviation of 19.95%. The fund's beta was 0.67 and the risk-free rate

A mutual fund's average return for the year was 16.2% with

A mutual fund's average return for the year was 16.2% with a standard deviation of 19.95%. The fund's beta was 0.67 and the risk-free rate was 2.29%. What is the Sharpe Ratio? (Provide your solution as a decimal with four digits of accuracy.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The process of using variables to represent unknown quantities and then finding relationships that involve these variables is referred to as ______ ________ .

A mutual fund's average return for the year was 17.32% with a standard deviation of 13.49%. The fund's beta was 2.62 and the risk-free rate was 2.46%. What is the Sharpe Ratio? (Provide your solution...

A mutual fund's average return for the year was 9.87% with a standard deviation of 12.05%. The fund's beta was 2.47 and the risk-free rate was 4.5%. What is the Treynor Index? (Provide your solution...

A mutual fund's average return for the year was 9.47% with a standard deviation of 19.24%. The fund's beta was 2.01 and the risk-free rate was 4.94%. What is the Treynor Index? (Provide your solution...

Adirondack Small-Cap Fund (ticker ADKSX). Use the return information in Table 1 below to evaluate the performance of ADKSX since 1 January 2016. Using the data provided, in an easy-to-find location,...

Parmacheenee Belle's entire common stock portfolio ($500,000) is allotted to an index fund tracking the Standard & Poors 500 index. The expected rate of return on the index is 9.5% and the standard...

j Let the measure of unemployed workers be denoted by u = uL + uH, be useful to define the market tightness as /u. Once a match has been formed, the wage is determined through Nash bargaining, with...

1. Which of the following statements is true about common stocks that do not pay dividends? a. they have a value that equals the book value of the firm's assets b. they have a value that equals the...

Can someone help me do these? I'd like to see how they were done as well so I know how to do them in the future please. 1. You calculated that the average return of your portfolio is 5% and the...

John, age 25, is a full time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. his only income is $4200 of wages from a part-time job at...

What are some of the likely problems facing the marketing manager in a small firm who plans to search the Internet for information on competitors marketing plans? How can the marketing manager...

R&D is not mentioned in the financial statements anywhere. How have they determined high R&D for certain companies?

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...