Question: Fund A earns an average return of 13%, while fund B earns an average return of 8%. The benchmark has an average return of -1.5%.
Fund A earns an average return of 13%, while fund B earns an average return of 8%. The benchmark has an average return of -1.5%. If the standard deviation of fund As excess return over the benchmark is 8%, and the standard deviation of fund Bs excess return over the benchmark is 4.5%, which fund had superior performance based on the information ratio?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
